Suppose the economy is operating in the horizontal part of the Keynesian zone of the SRAS curve. Suddenly, aggregate demand increases. As a result real GDP will _____ and prices will _____.

Respuesta :

Suddenly, aggregate demand increases. As a result real GDP will decrease and prices will remain largely unchanged.

Aggregate demand increases as the components of aggregate demand, including personal consumption, capital spending, government spending, and exports minus imports, increase.

Aggregate demand is a measure of the aggregate demand for all manufactured goods and services produced in the economy. Aggregate demand is expressed as the total amount exchanged for those goods and services at a particular price level and time point.

Key findings

  • Total demand measures the total demand for all finished goods and services produced in the economy.
  • Aggregate demand is expressed as the total amount spent on those goods and services at a particular price level and time point.
  • Aggregate demand includes all consumer goods, capital goods (factories and equipment), exports, imports, and government expenditures.

Learn more about Aggregate demand here:https://brainly.com/question/1490249

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