When the price level rises,the quantity of real GDP supplied ________ because ________.
A)increases;the AS curve shifts rightward
B)increases;new businesses open
C)decreases;businesses fail and have to shut their doors
D)increases;businesses fail and have to shut their doors
E)decreases;new businesses open

Question

Quizplus · Accepted Answer

When the price level rises, the quantity of real GDP supplied increases because higher prices can lead to increased production and the opening of new businesses to meet the demand.

When the Price Level Rises,the Quantity of Real GDP Supplied