Other things remaining the same, an increase in the price level
A) increases aggregate supply.
B) decreases aggregate supply.
C) increases the quantity of real GDP supplied.
D) decreases the quantity of real GDP supplied.
E) neither change aggregate supply nor changes the quantity of real GDP supplied.

Question

Quizplus · Accepted Answer

An increase in the price level typically leads to an increase in the quantity of real GDP supplied because producers are willing to supply more goods and services at higher prices, assuming other factors remain constant.

Other Things Remaining the Same, an Increase in the Price