What would cause the price level to rise and employment to increase?
A) a shift to the left of the aggregate demand curve
B) a shift to the right of the aggregate demand curve
C) a shift to the left of the short-run aggregate supply curve
D) a shift to the right of the short-run aggregate supply curve

Question

Quizplus · Accepted Answer

A shift to the right of the aggregate demand curve increases the overall demand for goods and services in an economy, leading to higher prices (inflation) and increased employment as businesses expand production to meet the higher demand.

What Would Cause the Price Level to Rise and Employment