An increase in the price level leads to
A) neither a movement along the aggregate supply curve nor a shift of the aggregate supply curve.
B) a downward movement along the aggregate supply curve.
C) a leftward shift of the aggregate supply curve.
D) a rightward shift of the aggregate supply curve.
E) an upward movement along the aggregate supply curve.

Question

Quizplus · Accepted Answer

An increase in the price level typically results in an upward movement along the aggregate supply curve, as producers are willing to supply more at higher prices.

An Increase in the Price Level Leads to