Price Level Average Price Level per unit output SolutionAnsw

Price Level (Average Price Level per unit output)

Solution

Answer:- If AD shifts rightward, which AS curve (A,B or C) generates the biggest increases in output

Correct option:- Keynesian (A)

Reason:- The horizontal curve AS(A) will result in the biggest increases in output

Answer:- The biggest increases in prices

Correct option:- Monetarist (B)

Reason:- Vertical AS curve will result in the biggest increases in prices