Which of the following statements best describes the intermediate zone of the aggregate supply curve?
a. In the intermediate zone of the AS curve, movement in AD to the right will increase both the output level and the price level, while a movement in AD to the left would decrease both the output level and the price level.
b. In the intermediate zone of the AS curve, movement in AD to the left will increase both the output level and the price level, while a movement in AD to the left would decrease both the output level and the price level.
c. In the intermediate zone of the AS curve, movement in AD to the left will increase the output level and decrease the price level.
d. In the intermediate zone of the AS curve, movement in AD to the right will increase the output level and decrease the price level.
a. In the intermediate zone of the AS curve, movement in AD to the right will increase both the output level and the price level, while a movement in AD to the left would decrease both the output level and the price level.
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