The Canadian price level rises. This event
A)increases short-run aggregate supply.
B)increases the quantity of real GDP supplied.
C)decreases the quantity of real GDP supplied.
D)increases long-run aggregate supply.
E)decreases short-run aggregate supply.

Question

Quizplus · Accepted Answer

When the price level rises, the quantity of real GDP supplied increases in the short run because producers are willing to supply more at higher prices, assuming other factors remain constant.

The Canadian Price Level Rises. This Event