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Homework answers / question archive / If aggregate demand increases (shifts out) while aggregate supply is stable, aggregate output will unemployment rate will A decrease; decrease B
If aggregate demand increases (shifts out) while aggregate supply is stable, aggregate output will unemployment rate will A decrease; decrease B. decrease: increase C. increase; increase D. increase; decrease
Answer
Option B
decrease; increase
==
The aggregate demand curve shifts to the left and decreases both price level and real income (GDP) and increases unemployment as some of the resources will be unemployed because of the lower quantity supplied.
