-Refer to the graph above to answer this question.Which statement is true of the shift from AS₂ to AS₁? A)It could be caused by a tax cut. B)It illustrates stagflation. C)It would cause real GDP to rise. D)It illustrates economic growth. E)It could be a result of counter-cyclical monetary policy.

Question

Quizplus · Accepted Answer

The shift from AS2 to AS1 represents a leftward shift in the aggregate supply curve, which typically indicates a decrease in supply, leading to higher prices and lower output, a situation known as stagflation.

-Refer to the Graph Above to Answer This Question