________ increases the quantity of real GDP supplied and is shown as a movement along the AS curve.
A)A decrease in the quantity of money
B)A decrease in consumption expenditure
C)A fall in the expected rate of profit
D)A rise in the price level
E)An increase in potential GDP

Question

Quizplus · Accepted Answer

According to the short-run AS curve, a rise in the price level increases the quantity of real GDP supplied as firms are willing to supply more output at higher prices due to higher profits. This movement is represented by a movement along the AS curve, rather than a shift.

________ Increases the Quantity of Real GDP Supplied and Is