In Exhibit 16-5, a shift in aggregate demand from AD 2 to AD 3: a. decreases real GDP, and raises the price level. b. decreases real GDP, and lowers the price level. c. increases real GDP, and lowers the price level. d. increases real GDP, and raises the price level. g

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29-04-2022
Business

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In Exhibit 16-5, a shift in aggregate demand from AD 2 to AD 3: a. decreases real GDP, and raises the price level. b. decreases real GDP, and lowers the price level. c. increases real GDP, and lowers the price level. d. increases real GDP, and raises the price level. g

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Parrain Parrain · Answer 1 · 2022-05-04T13:18:05+02:00

When there is a shift in aggregate demand from AD2 to AD3 in Exhibit 16-5, this d. increases real GDP, and raises the price level.

What happens when aggregate demand shifts to AD3?

The shift from AD2 to AD3 is a rightward shift which points to the fact that real GDP is increasing.

This would lead to a higher price level because AD3 will intersect with the aggregate supply curve at a higher price.

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Find out more on the aggregate supply curve at https://brainly.com/question/13867740.