47
QuizMultiple Choice

Business and Government — Test

Question 47 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

What is likely to happen if a new aggregate demand curve moves to the right?

Answer
A
Prices and output would drop, and the equilibrium point will stay the same.
B
Prices would rise, and output would drop in the short run.
C
Prices would rise, and output would drop in the long run.
D
Prices and output would rise, and the equilibrium point will change.

Explanation

A rightward shift in aggregate demand means buyers want more goods and services at each price level. In the short run, this raises both the price level and real output, moving the economy to a new equilibrium point. Therefore, the correct choice is “Prices and output would rise, and the equilibrium point will change.”

AI-written and checked against the verified answer.

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