-Suppose that aggregate demand increased from AD 1 to AD 2 .For the price level to stay constant:

For the price level to remain constant while aggregate demand increases, the aggregate supply curve would need to shift rightward. This shift would increase the quantity of goods and services supplied, offsetting the increased demand and stabilizing prices.

-Suppose that aggregate demand increased from AD 1 to AD 2 .For the price level to stay constant:

For the price level to remain constant while aggregate demand increases, the aggregate supply curve would need to shift rightward. This shift would increase the quantity of goods and services supplied, offsetting the increased demand and stabilizing prices.

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-Suppose That Aggregate Demand Increased from AD₁ to AD₂

Question 75

Multiple Choice

-Suppose that aggregate demand increased from AD₁ to AD₂.For the price level to stay constant:

A) the aggregate supply curve would have to shift rightward
B) the aggregate supply curve would have to shift leftward
C) real output would have to remain constant
D) the aggregate supply curve would have to be vertical
E) the AS curve would have to be downward-sloping

Correct Answer: