Suppose the economy is in long-run equilibrium. Which of the following would cause prices and real GDP to rise in the short run? a) short-run aggregate supply shifts left. b) aggregate demand shifts left. c) aggregate demand shifts right. d) short-run aggregate supply shifts right.
Added by Daniel O.
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Now, if we want prices and real GDP to rise in the short run, we need to shift the AD or SRAS curve to the right. Option (c) says that aggregate demand shifts right, which means that there is an increase in the demand for goods and services in the economy. This Show more…
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