Moving upward along the SAS curve results in a ________ in the price level and ________ in real GDP.
A) rise; an increase
B) rise; a decrease
C) fall; an increase
D) fall; a decrease

Question

Quizplus · Accepted Answer

Moving upward along the SAS (short-run aggregate supply) curve indicates that firms are supplying more goods and services at higher prices, resulting in a rise (increase) in the price level and an increase in real GDP (output). This is because higher prices incentivize firms to increase production, which leads to an expansion in output.

Moving Upward Along the SAS Curve Results in a ________