Respuesta :
The concept mentioned is Short-run aggregate supply. The answer is, a decline in short-run aggregate supply leads to reduced output and a higher price level.
Short-run aggregate supply is the overall product of frugality during the short run. The behavior of aggregate force is what utmost easily differentiates frugality in the short run from frugality's behavior in the long term.
Because the general position of prices doesn't affect the capacity of the frugality to produce goods and services over the long run, the aggregate force wind, in the long run, is perpendicular. A drop in aggregate force in the short-run total request results in an increase in the price position and a drop in real products.
The position of the real product performing from the shock can be lesser or lower than full- the employment real product. Advanced prices for inputs that are extensively used across the entire frugality, similar to labor or energy, can have a macroeconomic impact on the aggregate force.
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