If aggregate demand increases while short-run aggregate supply stays the same, what is the likely outcome?
A. Prices will fall and GDP will rise
B. Both prices and GDP will fall
C. Prices will rise and GDP will increase
D. GDP will stay the same while prices fall

Question

If aggregate demand increases while short-run aggregate supply stays the same, what is the likely outcome?
 A. Prices will fall and GDP will rise
 B. Both prices and GDP will fall
 C. Prices will rise and GDP will increase
 D. GDP will stay the same while prices fall

Sefton · Answer

The correct answer is C. When aggregate demand (AD) rises—people are spending more—but short-run aggregate supply (SRAS) stays the same, producers raise both prices and output to meet demand. So, GDP increases, and inflation rises too. This happened in the Philippines during early recovery from COVID-19, when reopening led to more consumer spending and a rise in prices at the same time.

Answered by Sefton | 2025-05-26

If aggregate demand increases while short-run aggregate supply stays the same, what is the likely outcome? A. Prices will fall and GDP will rise B. Both prices and GDP will fall C. Prices will rise and GDP will increase D. GDP will stay the same while prices fall

Answer (1)

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If aggregate demand increases while short-run aggregate supply stays the same, what is the likely outcome?
A. Prices will fall and GDP will rise
B. Both prices and GDP will fall
C. Prices will rise and GDP will increase
D. GDP will stay the same while prices fall

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[Sagot para sa’yo] Give an example of a cultural symbol that represent Filipino identity. Explain why you consider it as a cultural symbo