Exhibit 11-4
-The graph in Exhibit 11-4 shows a(n)
A)increase in short-run aggregate supply
B)increase in long-run aggregate supply
C)decrease in short-run aggregate supply
D)decrease in long-run aggregate supply
E)decrease in aggregate quantity demanded

Question

Exhibit 11-4 
-The graph in Exhibit 11-4 shows a(n)
A)increase in short-run aggregate supply 
B)increase in long-run aggregate supply 
C)decrease in short-run aggregate supply 
D)decrease in long-run aggregate supply 
E)decrease in aggregate quantity demanded

Quizplus · Accepted Answer

The graph shows a rightward shift of the short-run aggregate supply curve, indicating an increase in the quantity of goods and services supplied in the short run at each price level. This could be due to factors such as lower input prices, increased productivity, or increased capacity utilization. There is no information provided about changes in long-run aggregate supply or aggregate demand.

Exhibit 11-4 -The Graph in Exhibit 11-4 Shows A(n)