What would cause prices and real GDP to rise in the short run?
A) short-run aggregate supply shifts right
B) short-run aggregate supply shifts left
C) aggregate demand shifts right
D) aggregate demand shifts left

Question

Quizplus · Accepted Answer

An increase in aggregate demand would cause prices and real GDP to rise in the short run. This is due to the fact that an increase in aggregate demand increases the quantity of goods and services demand, leading to an increase in both prices and real GDP.

What Would Cause Prices and Real GDP to Rise in the Short