If aggregate demand grows faster than aggregate supply, the equilibrium price level will rise.

Name: If aggregate demand grows faster than aggregate supply, the equilibrium price level will rise.
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Question

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When aggregate demand grows faster than aggregate supply, there is excess demand in the market, leading to a rise in the equilibrium price level. When demand exceeds supply, buyers are willing to pay higher prices to obtain the limited goods, resulting in an increase in prices.

If Aggregate Demand Grows Faster Than Aggregate Supply, the Equilibrium