An increase in the price level will cause
A)an increase in the quantity of aggregate output supplied
B)a decrease in the quantity of aggregate output supplied
C)a leftward shift of the aggregate supply curve
D)a rightward shift of the aggregate supply curve
E)a leftward or rightward shift of the aggregate supply curve,depending on the reason for the price change

Question

Quizplus · Accepted Answer

An increase in the price level typically results in an increase in the quantity of aggregate output supplied, as producers are willing to supply more at higher prices, assuming other factors remain constant.

An Increase in the Price Level Will Cause