Question

"When aggregate demand​ increases," A. the price level is likely to fall as GDP rises. B. aggregate supply will shift to the right. C. aggregate supply will shift to the left. D. the price level is likely to rise as GDP rises.

Answer 1

Answer:

D. the price level is likely to rise as GDP rises.

Explanation:

The aggregate demand measures all the goods produced in an economy at a given price in a particular period.

When the aggregate demand increases, the aggregate demand curve shifts to the right. When aggregate demand increases, aggregate demand exceeds aggregate supply and aggregate price and output would increase.