Figure 15-1

-Refer to Figure 15-1. In the short run, a favorable shift in aggregate supply would move the economy from
A) A to B.
B) B to C.
C) C to D.
D) D to A.

Question

Figure 15-1
 
-Refer to Figure 15-1. In the short run, a favorable shift in aggregate supply would move the economy from
A) A to B. 
B) B to C. 
C) C to D. 
D) D to A.

Quizplus · Accepted Answer

In the short run, a favorable shift in aggregate supply would move the economy from point A to point B. This is because an increase in aggregate supply will lead to a decrease in the price level and an increase in output.

Figure 15-1 -Refer to Figure 15-1. in the Short Run, a Favorable