Figure 11.3: -Using Figure 11.3,a Shift in Aggregate Supply from AS₂ to from AS₂

question 45

Multiple Choice

Figure 11.3:
-Using Figure 11.3,a shift in aggregate supply from AS₂ to AS₁,ceteris paribus,is most likely to cause:

• A) A decrease in the price level,but no change in real output.
• B) A decrease in the price level and an increase in real output.
• C) An increase in the price level,but no change in real output.
• D) An increase in the price level and an increase in real output.

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Definitions:

Liability Account

An account that records obligations or amounts owed to others that will require a future outflow of resources.

Liabilities

Financial obligations or debts owed by a business to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Debits

Accounting entries that increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Credits

In accounting, credits are entries that decrease assets or increase liabilities and equity on a company's balance sheet.