In the short run, an increase in aggregate demand
A. lowers the price level and decreases real GDP.
B. lowers the price level and increases real GDP.
C. raises the price level and increases real GDP.
D. raises the price level and decreases real GDP.
Answer:C
In the short run, an increase in aggregate demand
A. lowers the price level and decreases real GDP. B. lowers the price level and increases real GDP. C. raises the price level and increases real GDP. D. raises the price level and decreases real GDP.