When the price level rises,the quantity of real GDP supplied ________ because ________.
A)decreases;new businesses open
B)increases;new businesses open
C)decreases;businesses fail and have to shut their doors
D)increases;AS curve shifts rightward
E)increases;businesses fail and have to shut their doors

Question

Quizplus · Accepted Answer

When the price level rises, the quantity of real GDP supplied increases because new businesses open, as higher prices can lead to higher revenues and profits, encouraging production.

When the Price Level Rises,the Quantity of Real GDP Supplied