Figure 12.2

-Consider the economy described in Figure 12.2. Assume that equilibrium is at point A. Given AD₁, a rightward shift of the aggregate supply curve would cause

Question

Figure 12.2 -Consider the economy described in Figure 12.2. Assume that equilibrium is at point A. Given AD₁, a rightward shift of the aggregate supply curve would cause

Quizplus · Accepted Answer

A rightward shift of the aggregate supply curve indicates an increase in the total supply of goods and services in the economy at every price level. This typically leads to higher real GDP as the economy can produce and sell more goods and services, hence E) real GDP to rise is correct.

Figure 12.2 -Consider the Economy Described in Figure 12.2. Assume That Equilibrium