The figure shows the determination of the equilibrium price level and real GDP in an aggregate demand-aggregate supply model.Which of the following economic changes is depicted by a movement from point e to point e'?


A) An increase in short-run aggregate supply
B) An increase in long-run aggregate supply
C) A decrease in short-run aggregate supply
D) A decrease in long-run aggregate supply
E) An increase in the aggregate quantity demanded

Short-Run Aggregate Supply

The aggregate volume of products and services that companies intend to sell within a brief period in the economy, based on existing price levels.

Long-Run Aggregate Supply

Represents the total production of goods and services in an economy at full employment, without any market frictions.

Aggregate Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in an economy.