If an economic crisis caused the collapse of the automobile industry, then "AS shifts left and the output would increase".
Answer: Option E
Explanation:
The aggregate demand / aggregate supply model is a system that indicates what establishes the economy's total supply or total demand, as well as how the macroeconomic level interacts with total demand and supply.
In time, the vertical line portraying potential GDP or the "full employment scale of GDP" will also progressively shift to the right. As the cost of key inputs increases, the aggregate supply curve shifts to the left, allowing for a mixture of lower output, higher unemployment, and increased inflation.
