Which of the Following Is Implied by a Leftward Shift

question 70

Multiple Choice

Which of the following is implied by a leftward shift in the economy's AS curve?

• A)There is an increase in aggregate supply.
• B)There is a demand shock.
• C)At any given price level,a lower level of output will be supplied.
• D)At any given price level,a higher level of output will be supplied.
• E)The same output will be produced in equilibrium,but at a lower price level.

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Definitions:

Government Intervention

Actions taken by the government to influence or directly regulate economic activity, markets, or distribution of resources.

Price Ceiling

A legal maximum on the price at which a good can be sold.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual price they receive.

Excess Demand

A situation where the quantity demanded of a good or service exceeds its quantity supplied at a particular price.