Refer to the information provided in Figure 11.3 below to answer the questions that follow. Figure 11.3 -Refer to Figure 11.3. A decrease in aggregate supply is represented by A) a movement from Point B to Point A along AS₁. B) a movement from Point B to Point C along AS₁. C) a shift from AS₁ to AS₂. D) a shift from AS₁ to AS₀.

Question

Quizplus · Accepted Answer

A decrease in aggregate supply is shown by a leftward shift of the aggregate supply curve. Therefore, the correct choice is a shift from AS₁ to AS₂, as shown in option C. A movement along the curve, as shown in options A and B, represents a change in quantity supplied, not aggregate supply. Option D represents an increase in aggregate supply, not a decrease.

Refer to the Information Provided in Figure 11