Question

If the best weather in years increased food production in the Midwest, then there is a movement down the AS curve as output decreased. AS shifts right and output would decrease. AS shifts right and output would increase. AS shifts left and output would decrease. AS shifts left and the output would increase.

Answer 1

Answer: AS shifts right and output would increase

Step-by-step explanation:

As a result of the increased food production in the Midwest, the Aggregate Supply increases because more quantity is being poured into the Economy.

When this happens the Aggregate Supply shifts right and output increases as shown on the graph. Notice how the Equilibrium point went from Q1 to Q2 because the Aggregate Supply Curve went from AS1 to AS2.