A rightward shift of the AD curve in the very steep upper part of the short-run AS curve will
A) increase real output by more than the price level.
B) increase the price level by more than real output.
C) reduce real output by more than the price level.
D) reduce the price level by more than real output.

Question

Quizplus · Accepted Answer

When the AD curve shifts rightward in the very steep upper part of the short-run AS curve, it primarily increases the price level rather than real output, due to the limited capacity for additional output in this range.

A Rightward Shift of the AD Curve in the Very