If the current macroequilibrium is below an output level of that associated with full employment,how would the current equilibrium be impacted by a rightward shift of the aggregate supply curve,ceteris paribus?
A)A higher price level and a higher level of output.
B)A higher price level and a lower level of output.
C)A recession or depression.
D)A lower price level and a higher level of output.

Question

Quizplus · Accepted Answer

A rightward shift of the aggregate supply curve, ceteris paribus, indicates an increase in the total supply of goods and services in the economy at every price level. This typically results in a lower price level due to increased supply, and a higher level of output as producers are willing and able to produce more, moving the economy closer to or achieving full employment.

If the Current Macroequilibrium Is Below an Output Level of That