In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?
A. The price level and real GDP will both rise.
B. The price level will not change, but real GDP will increase.
C. The price level will rise, but real GDP will not change.
D. Both the price level and real GDP will not change.
Answer: A
Economics
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