Ceteris paribus,based on the aggregate supply curve,if the price level _______ the quantity of real output _______ increases.
A) Increases;produced
B) Decreases;produced
C) Increases;demanded
D) Decreases;demanded

Question

Quizplus · Accepted Answer

According to the aggregate supply curve, as the price level increases, the quantity of real output produced also increases. This is because a higher price level generally leads to an increase in the production of goods and services, as firms are incentivized to increase their supply in order to earn higher profits.

Ceteris Paribus,based on the Aggregate Supply Curve,if the Price Level