Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3 -Refer to Figure 12.3.Hurricane Katrina destroyed a large portion of the infrastructure along the Gulf of Mexico coast.This caused A)the short-run aggregate supply curve to shift from AS₁ to AS₂. B)the short-run aggregate supply curve to shift from AS₁ to AS₀. C)the economy to move from Point B to Point A along AS₁. D)the economy to move from Point C to Point B along AS₁.

Question

Quizplus · Accepted Answer

Hurricane Katrina destroyed a large portion of the infrastructure along the Gulf of Mexico coast. This caused a decrease in the economy's productive capacity, which is represented by a shift to the left in the short-run aggregate supply curve from AS1 to AS2.

Refer to the Information Provided in Figure 12