Figure 5-2

In Figure 5-2, if the aggregate demand curve moves to the right less rapidly than the aggregate supply curve, then
A) the price level should decline over time.
B) the price level should remain stable.
C) the price level will tend to increase.
D) the level of real GDP should decrease.

Question

Figure 5-2

In Figure 5-2, if the aggregate demand curve moves to the right less rapidly than the aggregate supply curve, then
A) the price level should decline over time. 
B) the price level should remain stable. 
C) the price level will tend to increase. 
D) the level of real GDP should decrease.

Quizplus · Accepted Answer

The Answer of Figure 5-2

In Figure 5-2, if the aggregate demand curve moves to the right less rapidly than the aggregate supply curve, then
A) the price level should decline over time. 
B) the price level should remain stable. 
C) the price level will tend to increase. 
D) the level of real GDP should decrease.

Figure 5-2 in Figure 5-2, If the Aggregate Demand Curve Moves to Curve