When there is a shift in aggregate demand from AD2 to AD3 in Exhibit 16-5, this d. increases real GDP, and raises the price level.
What happens when aggregate demand shifts to AD3?
The shift from AD2 to AD3 is a rightward shift which points to the fact that real GDP is increasing.
This would lead to a higher price level because AD3 will intersect with the aggregate supply curve at a higher price.
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Find out more on the aggregate supply curve at https://brainly.com/question/13867740.
