A positively sloped aggregate supply curve indicates that
A. An increase in aggregate demand will be associated with an increase in the price level and no change in equilibrium output.
B. An increase in aggregate demand will be associated with an increase in both the price level and equilibrium output.
C. An increase in aggregate demand will be associated with an increase in equilibrium output and no change in the price level.
D. None of the above.
Answer:B
A positively sloped aggregate supply curve indicates that
A. An increase in aggregate demand will be associated with an increase in the price level and no change in equilibrium output. B. An increase in aggregate demand will be associated with an increase in both the price level and equilibrium output. C. An increase in aggregate demand will be associated with an increase in equilibrium output and no change in the price level. D. None of the above.