Refer to the information provided in Figure 11.3 below to answer the questions that follow. Figure 11.3 -Refer to Figure 11.3. During the 1980s, many firms in the United States were not investing in new capital. This would have caused A) the short-run aggregate supply curve to shift from AS₁ to AS₀. B) the short-run aggregate supply curve to shift from AS₁ to AS₂. 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

A lack of investment in new capital would decrease the short-run aggregate supply, shifting the curve from AS₁ to AS₂.

Refer to the Information Provided in Figure 11