What would make the price level decrease and real GDP increase?
A) Long-run aggregate supply shifts right.
B) Long-run aggregate supply shifts left.
C) Aggregate demand shifts right.
D) Aggregate demand shifts left.

Question

Quizplus · Accepted Answer

If the long-run aggregate supply shifts right, it means that the economy is able to produce more output at the same price level. This would result in a decrease in the price level and an increase in real GDP, as there is more output being produced.

What Would Make the Price Level Decrease and Real GDP