Consider the attached aggregate model. Which of the following could cause equilibrium to move from point a to point b?
1. A temporary reduction in aggregate supply
2. An adverse supply shock
3. A beneficial supply shock
4. A gradual decrease in resources© BrainMass Inc. brainmass.com October 10, 2019, 1:42 am ad1c9bdddf
3. A beneficial supply shock.
When the economy moves from point A to point B real GDP goes up and the ...
A beneficial supply shock is integrated in this solution.