A leftward shift in the economy's AS curve implies that
A)at any given price level,a lower level of output will be supplied.
B)at any given price level,a higher level of output will be supplied.
C)there is an increase in aggregate supply.
D)there is a demand shock.
E)the same output will be produced in equilibrium,but at a lower price level.

Question

Quizplus · Accepted Answer

A leftward shift in the economy's AS curve implies that, at any given price level, a lower level of output will be supplied. This means that the cost of producing goods and services has increased, or that there are supply-side issues that have caused a decrease in production capacity, leading to a reduction in the amount of goods and services that producers are able and willing to supply at each price level.

A Leftward Shift in the Economy's AS Curve Implies That