Which of the following will most likely accompany an unanticipated increase in aggregate demand?
A) a decrease in prices
B) a decrease in resource prices
C) a decrease in real GDP
D) an increase in real GDP

Question

Quizplus · Accepted Answer

An unanticipated increase in aggregate demand would lead to an increase in real GDP. This is because as demand increases, firms will produce more to meet the additional demand, leading to an increase in production and output. A decrease in prices or resource prices would typically result from a decrease in aggregate demand, not an increase. A decrease in real GDP would also not occur as a result of an increase in aggregate demand.

Which of the Following Will Most Likely Accompany an Unanticipated