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If aggregate supply increases and aggregate demand remains unchanged

Gideon123

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If aggregate supply increases and aggregate demand remains unchanged

▸ there will be a positive relationship between the price level and the level of aggregate output.

▸ there will be a negative relationship between the price level and the level of aggregate output.

▸ there will be no systematic relationship between the price level and the level of aggregate output.

▸ the price level will remain unchanged, but aggregate output will decrease.

Textbook

Principles of Economics

Edition: 12^th

Authors: Case, Fair, Oster

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Andreasnlnvld

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More solutions for this book are available here

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Gideon123 Author

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Thank you

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