If there is a rise in the price level,there is ________ in the quantity of real GDP supplied and a movement ________ along the AS curve.
A)a decrease;downward
B)an increase;upward
C)an increase;downward
D)a decrease;upward
E)no change;upward

Question

Quizplus · Accepted Answer

A rise in the price level leads to an increase in the quantity of real GDP supplied, as producers are willing to supply more goods and services at higher prices. This movement is represented by an upward shift along the AS curve.

If There Is a Rise in the Price Level,there Is