If an increase in the growth rate of AD leads to an increase in real GDP in the short run:
A) the increase in AD could have been correctly anticipated.
B) the increase in AD could have been greater than anticipated.
C) the increase in AD could have been less than anticipated.
D) the increase in AD could have been any of the above.

Question

Quizplus · Accepted Answer

In the short run, if the increase in aggregate demand (AD) leads to an increase in real GDP, it suggests that the increase in AD was greater than anticipated, causing firms to increase production to meet the higher demand.

If an Increase in the Growth Rate of AD Leads