Which of the following is a likely impact of an increase in the price level in an economy on the aggregate supply in the economy?
A) an increase in the quantity of real GDP supplied
B) a decrease in the quantity of real GDP supplied
C) a leftward shift of the aggregate supply curve
D) a rightward shift of the aggregate supply curve
E) an increase in the slope of the aggregate supply curve

Question

Quizplus · Accepted Answer

An increase in the price level in an economy typically leads to an increase in the quantity of real GDP supplied, as producers are incentivized to produce more due to higher prices. This is represented by a movement along the aggregate supply curve, not a shift of the curve itself.

Which of the Following Is a Likely Impact of an Increase