Which combination of shifts of aggregate demand and supply would definitely cause an increase in real GDP?
A)Demand shifts to the left and supply shifts to the right.
B)Demand shifts to the left and supply shifts to the left.
C)Demand shifts to the right and supply shifts to the right.
D)Demand shifts to the right and supply shifts to the left.

Question

Quizplus · Accepted Answer

When demand shifts to the right, it indicates an increase in the quantity of goods and services demanded at every price level, suggesting consumers are willing to purchase more. When supply shifts to the right, it indicates an increase in the quantity of goods and services supplied at every price level, suggesting producers are willing to supply more. The combination of increased demand and increased supply typically leads to an increase in real GDP, as more goods and services are produced and consumed.

Which Combination of Shifts of Aggregate Demand and Supply Would