If there is a rise in the price level,there is a(n)________ movement along the AS curve because there is ________ in the quantity of real GDP supplied.
A)downward;a decrease
B)upward;an increase
C)downward;an increase
D)upward;a decrease
E)upward;no change

Question

Quizplus · Accepted Answer

A rise in the price level leads to an upward movement along the Aggregate Supply (AS) curve because it typically results in an increase in the quantity of real GDP supplied, as producers are willing to supply more at higher prices.

If There Is a Rise in the Price Level,there Is