An increase in aggregate supply will result in
A)lower levels of employment
B)a rightward shift of the aggregate demand curve
C)a higher price level
D)a leftward shift of the aggregate demand curve
E)an economic expansion

Question

Quizplus · Accepted Answer

An increase in aggregate supply means that more goods and services are being produced at every price level, which leads to lower prices and increased output. This can lead to economic expansion as businesses increase production and hire more workers to meet the rising demand for goods and services.

An Increase in Aggregate Supply Will Result in