in-the-ad-as-model-what-happens-to-the-price-level-when-aggregate-demand-increas

Question

In the AD-AS model, what happens to the price level when aggregate demand increases due to higher government spending?

Accepted Answer

Price level increases as aggregate demand shifts right.

Answer

Price level decreases as aggregate demand shifts left.

Answer

Price level remains unchanged as aggregate demand shifts right.

Answer

Price level decreases as aggregate demand shifts right.