A An increase in real output and an increase in the price le

A) An increase in real output and an increase in the price level
B) An increase in real output, but no change in the price level
C) An increase in price level, but no change in real output
D) An decrease in price level, but no change in real output

Solution

Option (B).

Both AD1 and AD2 are in the horizontal segment of AS curve. so this shift will result in higher real output, but price level remains unchanged.