Real GDP definitely increases if
A)both the AD curve and the AS curve shift rightward.
B)both the AD curve and AS curve shift leftward.
C)the AD curve shifts leftward and the AS curve shifts rightward.
D)the AS curve shifts leftward and the AD curve does not shift.
E)potential GDP decreases so that real GDP exceeds potential GDP.

Question

Quizplus · Accepted Answer

When both the AD curve and the AS curve shift rightward, it means that there is an increase in both demand and supply in the economy. This would lead to an increase in output and prices, resulting in a higher real GDP.

Real GDP Definitely Increases If