Consider the Basic AD/AS Model with an Upward-Sloping AS Curve

question 98

Multiple Choice

Consider the basic AD/AS model with an upward-sloping AS curve.A positive aggregate demand shock will result in

• A)an increase in prices but not output.
• B)an increase in output but not prices.
• C)an increase in both output and prices.
• D)a decrease in both output and prices.
• E)a decrease in output and an increase in prices.

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