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MMLU / What will happen to the equilibrium price level and the equilibrium quantity of…

Problem

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question

What will happen to the equilibrium price level and the equilibrium quantity of output if the aggregate demand curve shifts to the right? Assume a Classical aggregate supply curve.

choices

  1. The equilibrium price level increases while the equilibrium quantity of output decreases.
  2. The equilibrium price level decreases while the equilibrium quantity of output increases.
  3. The equilibrium price level and quantity of output increase.
  4. The equilibrium price level increases while the equilibrium quantity of output remains unchanged.

subject

high_school_macroeconomics

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