Assume that the aggregate supply curve is upward sloping. An expansionary fiscal policy that causes only the aggregate demand curve to increase will

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When the aggregate demand curve shifts to the right (increases) in the context of an upward sloping aggregate supply curve, both output and prices will increase. This is because the higher demand leads to more production (increased output) and higher prices due to the increased demand for goods and services.

Assume That the Aggregate Supply Curve Is Upward Sloping