Other things equal, an increase in aggregate demand will result in:
A)an economic expansion.
B)higher unemployment and a lower equilibrium price level.
C)an economic recession.
D)a decrease in equilibrium real GDP and an increase in the equilibrium level of prices.
E)decreased economic welfare.

Question

Quizplus · Accepted Answer

An increase in aggregate demand will result in an economic expansion as businesses will need to produce more goods and services to meet the demand, leading to increased employment and potentially higher prices.

Other Things Equal, an Increase in Aggregate Demand Will Result