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17. Aggregate Demand and Aggregate Supply Analysis
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17. Aggregate Demand and Aggregate Supply Analysis
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17. Aggregate Demand and Aggregate Supply Analysis / AD-AS Model: Equilibrium in the Short Run and Long Run / Problem 12
Problem 12
If a country experiences a significant increase in exports, what is the predicted outcome in the AD-AS model?
A
Short run aggregate supply shifts to the left, leading to higher price levels and lower real GDP.
B
Short run aggregate supply shifts to the right, leading to lower price levels and higher real GDP.
C
Aggregate demand shifts to the left, leading to lower price levels and real GDP in the short run.
D
Aggregate demand shifts to the right, leading to higher price levels and real GDP in the short run.
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