When potential GDP increases, _______ A. Aggregate demand increases B. Aggregate supply increases C. Both aggregate demand

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When potential GDP increases, _______

A. Aggregate demand increases

B. Aggregate supply increases

C. Both aggregate demand and aggregate supply increase

D. The price level rises

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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Question Posted: May 21, 2018 07:52 AM

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When potential GDP increases, _______ A. Aggregate demand increases B. Aggregate supply increases C. Both aggregate demand

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B As Figure 132 in ...View the full answer

Foundations of Macroeconomics

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