A) the aggregate supply curve would have to shift rightward.
B) the aggregate supply curve would have to shift leftward.
C) real domestic output would have to remain constant.
D) the aggregate supply curve would have to be vertical.

Question

A) the aggregate supply curve would have to shift rightward. 
B) the aggregate supply curve would have to shift leftward. 
C) real domestic output would have to remain constant. 
D) the aggregate supply curve would have to be vertical.

Quizplus · Accepted Answer

In order for real domestic output to increase while the price level remains constant, the aggregate supply curve would have to shift rightward. This would represent an increase in the economy's productive capacity, allowing for more output to be produced at each price level.

A) the Aggregate Supply Curve Would Have to Shift Rightward