If a country's aggregate demand rises, output _____, and the price level:
A) rises; rises.
B) rises; falls.
C) falls; rises.
D) falls; falls.

Question

Quizplus · Accepted Answer

When a country's aggregate demand rises, it typically leads to an increase in output as producers ramp up production to meet the higher demand. This increased demand for goods and services often leads to higher prices, hence the price level rises.

If a Country's Aggregate Demand Rises, Output _____, and the Price