A rightward shift in an aggregate demand curve will cause
A)No change in prices or output if the aggregate supply curve is upward-sloping.
B)Higher prices,but not higher output,if the aggregate supply curve is vertical.
C)Higher prices,but no change in output,if the aggregate supply curve is horizontal.
D)Higher output, but no change in prices, if the aggregate supply curve is vertical.

Question

Quizplus · Accepted Answer

When the aggregate supply curve is vertical, it indicates that the economy is at full capacity, so a rightward shift in aggregate demand will lead to higher prices but not higher output.

A Rightward Shift in an Aggregate Demand Curve Will Cause