A Leftward Shift in the Economy's AS Curve Implies That

question 10

Multiple Choice

A leftward shift in the economy's AS curve implies that

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

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Definitions:

Quantities

The amount or number of a material or item measured or produced.

GDP Per Person

A measure of a country's economic output (Gross Domestic Product) divided by its population, indicating the average economic productivity per person.

Income

Earnings from work or investments, including wages, salaries, dividends, and interest.

Expenditure

The act of spending funds or disbursing money for various purposes such as operations, investments, or consumption.