Along the intermediate range of the aggregate supply curve the price level and the level of GDP changes as an economy approaches full employment.

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Along the intermediate range of the aggregate supply curve, the price level and the level of GDP both change as an economy approaches full employment. This is because as the economy approaches full employment, the marginal cost of production increases, which leads to a higher price level. Additionally, as more factors of production are utilized, output will increase, which results in a higher level of GDP.

Along the Intermediate Range of the Aggregate Supply Curve the Price