Suppose the AD and SAS curves shift upward by the same amount.Real GDP would ________ while the price level ________.
A)remain unchanged,rises
B)remain unchanged,remains unchanged
C)remain unchanged,falls
D)rise,remain unchanged
E)fall,rises

Question

Quizplus · Accepted Answer

When both the AD (Aggregate Demand) and SAS (Short-run Aggregate Supply) curves shift upward by the same amount, the real GDP remains unchanged because the intersection point (equilibrium) moves vertically up along the LAS (Long-run Aggregate Supply) curve, indicating no change in the quantity of output. However, the price level rises due to the upward shifts in both curves, which indicate an increase in the general price level of goods and services.

Suppose the AD and SAS Curves Shift Upward by the Same