Which of the following will most likely accompany an unanticipated increase in aggregate demand?
A) an increase in real output
B) an increase in unemployment
C) a decrease in real GDP
D) a decrease in the demand for resources

Question

Quizplus · Accepted Answer

An unanticipated increase in aggregate demand will lead to a higher demand for goods and services, which will increase output in the short run. This may lead to inflationary pressures, but in the short run, real output increases. Unemployment may decrease as businesses increase production to meet the increased demand, and there is typically not a decrease in the demand for resources. A decrease in real GDP is not likely to occur as a result of an increase in aggregate demand.

Which of the Following Will Most Likely Accompany an Unanticipated