In the short run, a rightward shift of the short-run aggregate supply curve ________ real GDP and ________ the price level.
A) decreases; lowers
B) increases; raises
C) decreases; raises
D) increases; lowers

Question

Quizplus · Accepted Answer

In the short run, a rightward shift of the short-run aggregate supply curve indicates an increase in supply, which typically leads to an increase in real GDP and a decrease in the price level, assuming demand remains constant.

In the Short Run, a Rightward Shift of the Short-Run