If Aggregate Supply Increases and Aggregate Demand Remains Unchanged

question 48

Multiple Choice

If aggregate supply increases and aggregate demand remains unchanged,

• A) there will be a positive relationship between the price level and the level of aggregate output.
• B) there will be a negative relationship between the price level and the level of aggregate output.
• C) there will be no systematic relationship between the price level and the level of aggregate output.
• D) the price level will remain unchanged, but aggregate output will decrease.

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