Figure 14-1
-Refer to the Figure 14-1.In the short run,what would result from a favourable shift in aggregate supply?
A) It would move the economy from A to B.
B) It would move the economy from B to C.
C) It would move the economy from C to D.
D) It would move the economy from D to A.

Question

Figure 14-1  
-Refer to the Figure 14-1.In the short run,what would result from a favourable shift in aggregate supply?
A) It would move the economy from A to B. 
B) It would move the economy from B to C. 
C) It would move the economy from C to D. 
D) It would move the economy from D to A.

Quizplus · Accepted Answer

A favorable shift in aggregate supply typically results in a movement from a lower output and higher price level to a higher output and lower price level, which is represented by a movement from point A to point B in the short run.