Figure 11.2 shows the relationship between the price level and real GDP. Suppose the economy is currently at e'. A leftward shift of the short-run aggregate supply curve would return the economy to potential output at:Figure 11.2Potential outputPrice levelLRASSRASP1P2eP3AD'AD*ADRealGDP(trillions ofdollars)a. point e*.b. point e".c. point e.d. a point higher than e".e. a point between e" and e*.

The aggregate demand curve represents the total demand of goods and services in an economy. The…

Figure 11.2 shows the relationship between the price level and real GDP. Suppose the economy is currently at e'. A leftward shift of the short-run aggregate supply curve would returm the economy to potential output at: Figure 11.2 Potential output Price level LRAS SRAS P. P. AD AD AD Real Q. GDP(trillions of dollars) Q. O a. point e*. O b. point e". O c. point e. O d. a point higher than e". O e. a point between e" and e*.