Which of the following would make the price level decrease and real GDP increase?
A)Long-run aggregate supply shifts right.
B)Long-run aggregate supply shifts left.
C)Aggregate demand shifts right.
D)Aggregate demand shifts left.

Question

Quizplus · Accepted Answer

When the long-run aggregate supply shifts right, it means that the economy can produce more output with the same amount of resources. This increase in the potential output of the economy would cause the price level to decrease, as there is a greater supply of goods and services available. Additionally, the increase in production would lead to an increase in real GDP.

Which of the Following Would Make the Price Level Decrease