Figure 33-6.
-Refer to Figure 33-6. Which of the long-run aggregate-supply curves is consistent with a recession?

Name: Figure 33-6. -Refer to Figure 33-6. Which of the long-run aggregate-supply curves is consistent with a recession?
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Question

Figure 33-6. 
-Refer to Figure 33-6. Which of the long-run aggregate-supply curves is consistent with a recession?

Quizplus · Accepted Answer

In a recession, the economy operates below its potential output, which is represented by a leftward shift of the long-run aggregate supply curve. LRAS3, being the leftmost curve, indicates a lower level of potential output, consistent with a recession.

Figure 33-6. -Refer to Figure 33-6. Which of the Long-Run Aggregate-Supply Curves