Question

If the availability of Resources (Productive Labor, etc.) actually decreases and their prices increase, then the equilibrium in this economy would shift from ________________ and that would be a _____________..

Answer 1

From Year 5 to Year 4 , Disinflation

Step-by-step explanation:

Under the AS/Ad model, which is a model of aggregate supply and aggregate demand and it states or define the level of price and the output via the relationship of the aggregate supply and aggregate demand.

Disinflation is the term which is defined as the slowdown of the pace of price inflation which is temporary.

So, when the resources availability decrease means supply is falling which in turn increase the price, the equilibrium in the economy shift from the Year 5 to Year 4 and this would happen because of the disinflation in the economy.