Ask Question
BusinessBusiness
17 September, 04:15

If AD increases, which of the following will result? a. an increase in output and an increase in the price level. b. an increase in output and a decrease in the price level. c. a decrease in output and an increase in the price level. d. a decrease in output and a decrease in the price level.

+4
Answers (1)
  1. 17 September, 04:22
    0
    a. an increase in output and an increase in the price level.

    Explanation:

    If Aggregate Demand increases, this will result in an increase in output and an increase in the price because short run aggregate demand measures total output for a single nominal price level

    In the long-run, increases in aggregate demand cause the price of a good or service to increase. When the demand increases the aggregate demand curve shifts to the right.

    Also, increased demand for a product in the long run will lead to increased output being supplied.

    The aggregate supply determines the extent to which the aggregate demand increases the output and prices of a good or service.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If AD increases, which of the following will result? a. an increase in output and an increase in the price level. b. an increase in output ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Daniels Transport has operating income of $68,200, interest expense of $210, dividends paid of $320, depreciation of $12,400, other income of $2,100, common stock of $48,500 with a par value of $1 per share, and retained earnings of $29,700.
Answers (1)
The human body cools itself by?
Answers (1)
Sunland Consulting has year-end account balances of Sales Revenue $537,400, Interest Revenue $2,800, Salary and Wages Expense $240,200, Rent Expense $135,000, Administrative Expense $69,500, Income Tax Expense $37,600, and Dividends $34,200.
Answers (1)
Since Al's Auto Parts has had trouble with its windshield wiper manufacturer in the past, it is requesting a guarantee from the company before it will place another order.
Answers (1)
A decrease in the availability of an important major resource such as oil shifts can cause
Answers (1)
New Questions in Business
Barr Corp. started a long-term construction project in 20X0. The following data relate to this project: Contract price $4,200,000 Costs incurred in 20X0 $1,750,000 Estimated costs to complete $1,750,000 Progress billings $900,000 Collections on
Answers (1)
Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of $120,000 in exchange for a 30 percent interest in the Alpha Partnership. Alpha will assume the mortgage on the building.
Answers (1)
Nareen is single, 68 years old, and reports the following in 2018: a. $12,000 alimony received (divorced in 2010) b. $82,520 Schedule C profit c. $3,500 SEP (self-employed pension) plan contribution d. $7,150 qualified dividends e.
Answers (1)
Sun Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2007. What is the annual dividend on the preferred stock? a. $60 per shareb. $30,000 in totalc.
Answers (1)
a risk averse investor, which of the following four otherwise identical investment would you prefer? A. Security W, which exhibits a standard deviation of 2% and offers an average return of 12%. B.
Answers (1)
Home » Business » If AD increases, which of the following will result? a. an increase in output and an increase in the price level. b. an increase in output and a decrease in the price level. c. a decrease in output and an increase in the price level. d.
Sign Up Forgot Password?