Question

The government increases the level of government expenditure. if there is no change in the aggregate supply​ curve, then aggregate demand will​ ________, real gdp will​ ________, and the price level will​ ________.

Answer 1

The aggregate supply will definitely decrease, the real GDP will also decrease and the price level will increase. So the answer in this question is first the aggregate supply will decrease, the real GDP will decrease and the price level will increase.

ANSWERS: Decrease, Decrease and Increase.