The Canadian price level rises.This event
A)increases short- run aggregate supply.
B)decreases short- run aggregate supply.
C)decreases the quantity of real GDP supplied.
D)increases the quantity of real GDP supplied.
E)increases long- run aggregate supply.

Question

Quizplus · Accepted Answer

When the price level rises, firms are willing to produce more because they can sell their goods at higher prices, leading to an increase in the quantity of real GDP supplied in the short run.

The Canadian Price Level Rises.This Event