If real GDP is less than potential GDP,then the ________ and the price level ________.
A)amount of potential GDP increases;falls
B)aggregate demand curve shifts rightward;falls
C)aggregate supply curve shifts leftward;rises
D)aggregate supply curve shifts rightward;falls
E)aggregate demand curve shifts leftward;rises

Question

Quizplus · Accepted Answer

When real GDP is less than potential GDP, it indicates an economic recession or underperformance. In such a scenario, the aggregate supply curve may shift rightward as resources are underutilized, leading to a decrease in the price level due to lower demand pressures.

If Real GDP Is Less Than Potential GDP,then the ________