Which of the following changes will lead to a decrease in the price level but an increase in the quantity of output in an economy?
A)a rise in aggregate demand
B)a rise in aggregate supply
C)a fall in aggregate demand
D)a fall in aggregate supply

Question

Quizplus · Accepted Answer

A rise in aggregate supply increases the total supply of goods and services in an economy, which typically leads to lower prices (decrease in price level) and an increase in the quantity of output produced and supplied, as producers are willing and able to supply more at each price level.

Which of the Following Changes Will Lead to a Decrease