Multiple Choice
Refer to the diagram below.Suppose that aggregate demand increased from AD1to AD2.For the price level to stay constant:
A) the aggregate supply curve would have to shift rightward.
B) the aggregate supply curve would have to shift leftward.
C) real domestic output would have to remain constant.
D) the aggregate supply curve would have to be vertical.
Correct Answer:

Verified
Correct Answer:
Verified
Q44: Explain the three reasons given for the
Q76: An increase in investment spending can be
Q84: An increase in household borrowing for consumption
Q106: Suppose that real domestic output in an
Q115: Suppose that real domestic output in an
Q135: A n expected rise in the rate
Q155: An increase in the price level in
Q159: An increase in wealth from a substantial
Q188: The real-balances effect suggests that a:<br>A)lower price
Q197: The long-run aggregate supply curve is vertical:<br>A)because