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Wittaler [7]
3 years ago
8

If an economic crisis caused the collapse of the automobile industry, then:a.there is a movement down the AS curve as output dec

reased.b.AS shifts right and output would decrease.c.AS shifts right and output would increase.d.AS shifts left and output would decrease.e.AS shifts left and the output would increase.
Business
2 answers:
mel-nik [20]3 years ago
4 0

If an economic crisis caused the collapse of the automobile industry, then "AS shifts left and the output would increase".

<u>Answer:</u> Option E

<u>Explanation:</u>

The aggregate demand / aggregate supply model is a system that indicates what establishes the economy's total supply or total demand, as well as how the macroeconomic level interacts with total demand and supply.

In time, the vertical line portraying potential GDP or the "full employment scale of GDP" will also progressively shift to the right. As the cost of key inputs increases, the aggregate supply curve shifts to the left, allowing for a mixture of lower output, higher unemployment, and increased inflation.

IRINA_888 [86]3 years ago
3 0

Answer:

AS shifts left and output decreases.

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In the united states, business cycles have occurred against a backdrop of a long-run trend of?
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<h3>What is Gross Domestic Product?</h3>

Gross domestic product (GDP) is a monetary indicator of the total market value of all the finished products that nations produce over a given time period. This measurement is frequently changed before it can be trusted as an indicator because of how complicated and subjective it is. The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP).

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3 0
2 years ago
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mylen [45]

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