Question

What does it signify if point 1 shifts down and to the right?

A. The price level and the real GDP are falling.
B. The real GDP is falling, and supply is increasing.
C. The price level is rising, and production is increasing.
D. The price level is falling, and demand and the real GDP are rising.

Answer 1

The Answer if I’m correct should be A. The price level and the real GDP are falling. Hope this helps!

Answer 2

Answer:

D. The price level is falling, and demand and the real GDP are rising.

Explanation:

The curve of the Aggregate Supply expresses the supply and cost of a certain product, if the point moves 1 unit down and to the right that means that the price level is falling and the demand and GDP are rising, that is because it is closer to the point of equilibrium.