Figure 16.4: FIGURE 16-4 Shifts of the Short-Run Aggregate Supply Curve
Figure 16.4: Panel (a) shows a decrease in short-run aggregate supply: the short-run aggregate supply curve shifts leftward from SRAS1 to SRAS2, and the quantity of aggregate output supplied at any given aggregate price level falls. Panel (b) shows an increase in short-run aggregate supply: the short-run aggregate supply curve shifts rightward from SRAS1 to SRAS2, and the quantity of aggregate output supplied at any given aggregate price level rises.