What will an increase in aggregate supply result in, all things equal?
A) lower levels of employment
B) a rightward shift of the aggregate demand curve
C) a leftward shift of the aggregate demand curve
D) an economic expansion

Question

What will an increase in aggregate supply result in, all things equal?  
A) lower levels of employment 
B) a rightward shift of the aggregate demand curve 
C) a leftward shift of the aggregate demand curve 
D) an economic expansion

Quizplus · Accepted Answer

An increase in aggregate supply means that businesses are producing more goods and services. This can lead to lower prices and increased output, which can stimulate economic growth and expansion. Therefore, an increase in aggregate supply is likely to result in an economic expansion.

What Will an Increase in Aggregate Supply Result In, All