If aggregate supply shifts to the right, which effects occur?

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Multiple Choice

If aggregate supply shifts to the right, which effects occur?

Explanation:
A rightward shift in aggregate supply expands the economy’s capacity to produce goods and services at every price level. With more output available, national income (real GDP) rises. Producing more typically requires more workers, so unemployment falls. The larger supply also puts downward pressure on the price level, so prices tend to fall (assuming aggregate demand stays constant). Put together, these effects mean national income rises, unemployment falls, and prices decrease, so all of the above occur.

A rightward shift in aggregate supply expands the economy’s capacity to produce goods and services at every price level. With more output available, national income (real GDP) rises. Producing more typically requires more workers, so unemployment falls. The larger supply also puts downward pressure on the price level, so prices tend to fall (assuming aggregate demand stays constant). Put together, these effects mean national income rises, unemployment falls, and prices decrease, so all of the above occur.

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