Multiple Choice
Along the horizontal range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
A) both the price level and real GDP.
B) only real GDP.
C) only the price level.
D) real GDP and reduce the price level.
Correct Answer:

Verified
Correct Answer:
Verified
Q73: In the aggregate demand-output model, equilibrium occurs
Q74: The aggregate supply curve relating the price
Q75: A cut in government spending, a decrease
Q76: According to the Keynesian model:<br>A) the equilibrium
Q77: If people believe inflation is likely to
Q79: A share market boom is often accompanied
Q80: Aggregate supply increases when:<br>A) wage rates decrease,
Q81: The classical theory that states that 'supply
Q83: A large decrease in Australia's share market
Q113: Suppose the economy is on the intermediate