Consider the exhibit below for the following questions.
Figure 33-1
-Refer to Figure 33-1.In the short run,a favorable shift in aggregate supply would move the economy from
A) A to B.
B) B to C.
C) C to D.
D) D to A.

Question

Consider the exhibit below for the following questions.
Figure 33-1 
-Refer to Figure 33-1.In the short run,a favorable shift in aggregate supply would move the economy from
A) A to B. 
B) B to C. 
C) C to D. 
D) D to A.

Quizplus · Accepted Answer

A favorable shift in aggregate supply means that the economy can produce more goods and services at the same price level. This would lead to a movement from point A to point B on the exhibit, as both output and price level increase.

Consider the Exhibit Below for the Following Questions