On the far left side of the AS curve, the economy is producing ________ potential, and on the far right of the curve, it is prod

Question

yarga [219]

1 year ago

10

On the far left side of the AS curve, the economy is producing ________ potential, and on the far right of the curve, it is prod

ucing ________ potential.

Business

1 answer:

MrRa [10] · Answer 1 · 2023-09-24T04:39:57+03:00

On the far left side of the AS curve, the economy is producing below potential, and on the far right of the curve, it is producing above potential.

<h3>What is the AS curve?</h3>

The aggregate supply curve is a curve that is used to show the total quantity of real GDP that is supplied in an economy at a particular time.

When the AS curve shifts to the left, it indicates that the economy is producing below its potential and when it shifts to the right, it means that the economy is producing above its potential.