If real output rises and the price level falls, this would likely be due to a:
A)rightward shift of the aggregate demand curve.
B)leftward shift of the aggregate demand curve.
C)rightward shift of the aggregate supply curve.
D)leftward shift of the aggregate supply curve.

Question

If real output rises and the price level falls, this would likely be due to a:
A)rightward shift of the aggregate demand curve. 
B)leftward shift of the aggregate demand curve. 
C)rightward shift of the aggregate supply curve. 
D)leftward shift of the aggregate supply curve.

Quizplus · Accepted Answer

A rightward shift of the aggregate supply curve causes real output to rise and the price level to fall.

If Real Output Rises and the Price Level Falls, This