If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right, the result will be a
A)decrease in the level of output.
B)decrease in the price level.
C)higher price level.
D)higher unemployment rate.

Question

Quizplus · Accepted Answer

When the aggregate demand curve shifts to the left, it indicates a decrease in the overall demand for goods and services. When the aggregate supply curve shifts to the right, it indicates an increase in the overall supply of goods and services. The combination of these two shifts typically results in a decrease in the price level, as the increased supply and decreased demand put downward pressure on prices.

If the Aggregate Demand Curve Shifts to the Left and the Aggregate