For a given aggregate supply curve,an increase in aggregate demand will:
A)decrease the real interest rate.
B)increase real GDP.
C)decrease the price level.
D)increase the real exchange rate.
E)decrease real GDP.

Question

Quizplus · Accepted Answer

An increase in aggregate demand will shift the AD curve to the right, leading to an increase in both real GDP and the price level. This is because higher demand will lead to higher output and prices. The other choices are not necessarily affected by changes in aggregate demand.

For a Given Aggregate Supply Curve,an Increase in Aggregate Demand