Which of the following, other things the same, would make the price level increase and real GDP decrease?
A)long-run aggregate supply shifts left.
B)long-run aggregate supply shifts right.
C)aggregate demand shifts right.
D)aggregate demand shifts left.

Question

Which of the following, other things the same, would make the price level increase and real GDP decrease?​
A)​long-run aggregate supply shifts left.
B)​long-run aggregate supply shifts right.
C)​aggregate demand shifts right.
D)​aggregate demand shifts left.

Quizplus · Accepted Answer

A leftward shift in long-run aggregate supply indicates a decrease in the economy's potential output, leading to higher prices (inflation) and lower real GDP.

Which of the Following, Other Things the Same, Would Make