In the short run, a rightward shift of the short-run aggregate supply curve____________ real GDP and____________ the price level.
A) increases; lowers
B) decreases; raises
C) decreases; lowers
D) increases; raises

Question

In the short run, a rightward shift of the short-run aggregate supply curve____________  real GDP and____________  the price level.
A) increases; lowers
B) decreases; raises
C) decreases; lowers
D) increases; raises

Quizplus · Accepted Answer

In the short run, a rightward shift of the short-run aggregate supply curve increases real GDP and lowers the price level because more goods and services are produced at lower prices.

In the Short Run, a Rightward Shift of the Short-Run