The price level rises in the short run if
A)aggregate demand or aggregate supply shifts left.
B)aggregate demand shifts right or aggregate supply shifts left.
C)aggregate demand shifts left or aggregate supply shifts right.
D)aggregate demand or aggregate supply shifts right.

Question

Quizplus · Accepted Answer

The price level rises in the short run if aggregate demand shifts right (increasing demand for goods and services at the same price levels) or aggregate supply shifts left (decreasing the supply of goods and services at the same price levels), both of which lead to higher prices.

The Price Level Rises in the Short Run If