A positive aggregate demand shock results in
A) decreased GDP, decreased unemployment and rising prices.
B) increased GDP, decreased unemployment and rising prices.
C) decreased GDP, increased unemployment and falling prices.
D) decreased GDP, increased unemployment and rising prices.
E) increased GDP, increased unemployment and falling prices.

Question

Quizplus · Accepted Answer

A positive aggregate demand shock leads to an increase in overall demand for goods and services in the economy, which results in increased production (GDP), lowered unemployment rate, and increased price levels as businesses can charge higher prices due to increased demand.

A Positive Aggregate Demand Shock Results in