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qid 7348 · economics
Question: When both short-run aggregate supply and aggregate demand increase which of the following can be said for certain?
- Both the price level and real GDP fall.
- The price level rises but the change in real GDP is uncertain.
- The price level falls but the change in real GDP is uncertain.
- Real GDP falls but the change in the price level is uncertain.
- The price level rises but real GDP falls.
- The price level rises and real GDP remains unchanged.
- The price level falls but real GDP rises.
- Both the price level and real GDP remain unchanged.
- Real GDP rises but the change in the price level is uncertain.
- Both the price level and real GDP rise.
Our answer: I. Real GDP rises but the change in the price level is uncertain. Source quote machine-checked (exact quote)
How it was answered
Multi-step solver (maze), replayed by code
Current source
OpenStax Principles of Macroeconomics 2e, Section 11.3 Shifts in Aggregate Supply
https://openstax.org/books/principles-macroeconomics-2e/pages/11-3-shifts-in-aggregate-supply
Source quote machine-checked (exact quote)
Earlier version (superseded)
https://openstax.org/books/principles-macroeconomics-2e/pages/11-3-shifts-in-aggregate-supply
Source weak (http_get_200_text_and_question_terms)
Earlier version (superseded)
No public source has been found for this card yet (3 places checked internally).