Based on the aggregate supply relation,an increase in current output will cause
A)a shift of the aggregate supply curve.
B)an increase in the current price level.
C)a change in the expected price level this year.
D)an increase in the expected price level and an upward shift of the AS curve.
E)an increase in the markup over labor costs.

Question

Quizplus · Accepted Answer

An increase in current output typically leads to an increase in the current price level due to higher demand for goods and services, which can push prices up.

Based on the Aggregate Supply Relation,an Increase in Current Output