Question
A decline in aggregate supply, assuming constant aggregate demand, will result in Blank______ in the price level.
Multiple choice question.
a decrease
no change
an increase
downward flexibility
Multiple choice question.
a decrease
no change
an increase
downward flexibility
Answers
GPT-4o mini
The correct answer is:
**an increase**
A decline in aggregate supply, with aggregate demand held constant, typically results in an increase in the price level.
**an increase**
A decline in aggregate supply, with aggregate demand held constant, typically results in an increase in the price level.