Ceteris paribus,a leftward shift of the aggregate supply curve will cause the equilibrium price level to _______ and equilibrium real output to _______.

Question

Quizplus · Accepted Answer

A leftward shift of the aggregate supply curve indicates a decrease in the total supply of goods and services at every price level, leading to an increase in the equilibrium price level due to scarcity and a decrease in equilibrium real output because of the reduced supply.

Ceteris Paribus,a Leftward Shift of the Aggregate Supply Curve Will