Answer to Question #338569 in Microeconomics for Unknown

Question

Within the AD-AS model, what will be the impact of expansionary demand management policy on the economy?

a. real output and the price level will increase, while unemployment decrease.

c. aggregate supply will decrease and the price level increase.

d. total production and employment will increase, while inflation decrease.

O b. aggregate demand will decrease and the price level increase.

Answer 1

a. real output and the price level will increase, while unemployment decrease.