Use the figure below to answer the following question.
Figure 10.3.4
-Refer to Figure 10.3.4.The shifts of the SAS and AD curves
A)cause a proportionate increase in long run aggregate supply.
B)increase real GDP.
C)create an above full- employment equilibrium.
D)lead to a recessionary gap.
E)lead to an inflationary gap.

Question

Use the figure below to answer the following question.
  Figure 10.3.4
-Refer to Figure 10.3.4.The shifts of the SAS and AD curves
A)cause a proportionate increase in long run aggregate supply. 
B)increase real GDP. 
C)create an above full- employment equilibrium. 
D)lead to a recessionary gap. 
E)lead to an inflationary gap.

Quizplus · Accepted Answer

The shifts of the SAS and AD curves would increase real GDP.

Use the Figure Below to Answer the Following Question