As long as the aggregate supply curve is upward sloping, an increase in aggregate demand will increase
A)real wealth.
B)price levels.
C)unemployment.
D)net exports.

Question

Quizplus · Accepted Answer

An increase in aggregate demand will lead to an increase in the general price level, as businesses may respond by raising the prices of their goods and services in order to meet the increased demand. This assumes an upward sloping aggregate supply curve. The other options are not necessarily affected by changes in aggregate demand.

As Long as the Aggregate Supply Curve Is Upward Sloping