Producers believe the economy is headed for a recession, so they reduce their purchases of machinery and equipment.
1 answer:
Answer:
A - The Short Run Aggregate Supply curve shifts to the right.
Explanation:
The Short Run Aggregate Supply curve plots aggreagrate price against aggreagrate quantity.
If producers believe a recession is imminent and they reduce the amount of machinery purchased, the quantity supplied would reduce shifting the Short Run Aggregate Supply curve to the left.
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