Other things equal, an increase in aggregate demand will result in:
A) an economic expansion.
B) higher unemployment and a lower equilibrium price level.
C) an economic recession.
D) a decrease in equilibrium real GDP and an increase in the equilibrium price level.
E) a decrease in the overall economic welfare.

Question

Quizplus · Accepted Answer

An increase in aggregate demand will lead to an increase in production and economic activity, resulting in an economic expansion.

Other Things Equal, an Increase in Aggregate Demand Will Result