Ceteris paribus,a rightward shift of the aggregate supply curve will cause the equilibrium price level to _______ and equilibrium real output to _______.
A) Increase;increase
B) Increase;decrease
C) Decrease;increase
D) Decrease;decrease

Question

Quizplus · Accepted Answer

A rightward shift of the aggregate supply curve indicates an increase in the total supply of goods and services in an economy at every price level, leading to a decrease in the equilibrium price level and an increase in equilibrium real output.

Ceteris Paribus,a Rightward Shift of the Aggregate Supply Curve Will