If there is a rightward shift in aggregate demand and a rightward shift in aggregate supply, which of the following will occur?

Question

Quizplus · Accepted Answer

A rightward shift in both aggregate demand and aggregate supply indicates an increase in both the demand for and supply of goods and services. This typically results in an increase in real output due to higher demand and greater supply capacity. However, the effect on the price level is uncertain because the increase in demand tends to push prices up, while the increase in supply tends to pull prices down. The net effect on the price level depends on the relative magnitudes of the shifts in demand and supply.

If There Is a Rightward Shift in Aggregate Demand and a Rightward