If the AD curve shifts rightward, then
A)the price level will not change, but real GDP will increase.
B)both the price level and real GDP will decrease.
C)both the price level and real GDP will increase.
D)the price level will increase, but no change will occur in real GDP.
E)potential GDP increases.

Question

Quizplus · Accepted Answer

A rightward shift in the AD curve indicates an increase in aggregate demand, leading to higher price levels and increased real GDP in the short run.

If the AD Curve Shifts Rightward, Then