Refer to Figure 7-4. If consumers paid the full price of medical services, the price they would pay is

The effect of an increase in aggregate supply is a(n):

a. increase in the general level of prices and a decrease in real output. b. increase in the general level of prices and an increase in real output. c. decrease in the general level of prices and a decrease in real output. d. decrease in the general level of prices and an increase in real output.

Other factors held constant, a decrease in resource prices will shift the aggregate:

a. demand curve leftward. b. demand curve rightward. c. supply curve leftward. d. supply curve rightward.