If aggregate demand increases while aggregate supply is constant in an economy in the short run, which of the following statements is correct for the new equilibrium point? a) price goes down national income goes down B) price falls, national income rises NS) price goes up national income does not change D) price goes up national income goes down TO) price goes up national income goes up

If aggregate demand increases while aggregate supply is constant in an economy in the short run, which of the following statements is correct for the new equilibrium point? a) price goes down national income goes down B) price falls, national income rises NS) price goes up national income does not change D) price goes up national income goes down TO) price goes up national income goes up

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 42CTQ: On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because...

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If aggregate demand increases while aggregate supply is constant in an economy in the short run, which of the following statements is correct for the new equilibrium point?

a)	price goes down national income goes down

B)	price falls, national income rises

NS)	price goes up national income does not change

D)	price goes up national income goes down

TO)	price goes up national income goes up

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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