An increase in aggregate demand will have what effect on the price level and real GDP in the...
Question:
An increase in aggregate demand will have what effect on the price level and real GDP in the short run?
Aggregate demand:
Aggregate demand refers to the total amount of services and products that the economy or market is desiring and able to purchase at a specific price level for a particular period. It can be monthly, quarterly, or annually. When market prices increase, it serves as an economic indicator that firms should enhance their production areas to reach a higher level since demand is likely to increase.
Answer and Explanation: 1
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View this answerAn increase or rise in aggregate demand will cause both the price level and real GDP to rise in the short run and vice versa if the aggregate demand...
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Understanding Aggregate Supply & Demand
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Chapter 60 / Lesson 2
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In economics, aggregate supply and demand are used to determine the production and purchasing power of the economy. Learn about aggregate supply and aggregate demand, and explore the details of the AS/AD model devised by John Maynard Keynes.
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