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What Happens If Aggregate Demand Increases Simultaneously with a Decrease

Question 50

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What happens if aggregate demand increases simultaneously with a decrease in short-run aggregate supply,due to anticipated expansionary monetary policy?


A) The price level remains constant,and real gross domestic product (GDP) decreases.
B) The price level increases,and real gross domestic product (GDP) increases.
C) The price level increases,and real gross domestic product (GDP) decreases.
D) The price level decreases,and real gross domestic product (GDP) remains constant.
E) The price level increases,and real gross domestic product (GDP) remains constant.

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