If an aggregate demand stays constant, an increase in short-run aggregate supply will:

Question

BlackTom AI · Accepted Answer

A rightward shift of the short-run aggregate supply (SRAS) curve lowers the price level and raises real GDP.

1. Relevant knowledge points and concepts
- Aggregate demand (AD) shows the relationship between the overall price level and total real output demanded; it slopes downward.
- Short-run aggregate supply (SRAS) shows the relationship between the price level and real output firms supply in the short run; it slopes upward.
- Equilibrium in the AD–SRAS framework is where AD and SRAS intersect. A rightward shift of SRAS (an increase in SRAS) means suppliers are willing to produce more at every price level (e.g., due to lower input costs, better productivity).

2. Complete reasoning process step by step
- Start at initial equilibrium where AD intersects SRAS1 at (P1, Y1).
- If SRAS increases, the SRAS curve shifts right to SRAS2.
- With AD held constant, the new intersection with SRAS2 occurs at a lower price level and a higher real output level: P2 < P1 and Y2 > Y1.
- Intuition: greater supply reduces upward pressure on prices while enabling higher production/output.

3. Calculations with intermediate steps (illustrative linear example)
- Let AD: P = 100 − 0.5Y.
- SRAS1: P = 20 + 0.5Y. Solve for equilibrium: 100 − 0.5Y = 20 + 0.5Y → 80 = Y → Y1 = 80. Then P1 = 100 − 0.5(80) = 60.
- SRAS2 (increase in SRAS): P = 10 + 0.5Y. Solve: 100 − 0.5Y = 10 + 0.5Y → 90 = Y → Y2 = 90. Then P2 = 100 − 0.5(90) = 55.
- Result: price falls from 60 to 55, real GDP rises from 80 to 90.

4. Why the correct answer is correct
- The shift of SRAS right increases output at every price; with AD unchanged, the market clears at a lower price and higher real GDP. This is the standard comparative-statics result of the AD–SRAS model.

5. Why other options are incorrect
- "Reduce both the price level and real GDP": incorrect because increased SRAS raises output, not lowers it.
- "Increase both the price level and real GDP": incorrect because greater supply tends to reduce, not increase, the price level.
- "Increase the price level but reduce real GDP": incorrect; that describes a leftward SRAS shift or a drop in AD, not an increase in SRAS.

6. Conclusion
The correct outcome is that an increase in short-run aggregate supply (with AD constant) reduces the price level but increases real GDP, which matches the provided answer.

If an aggregate demand stays constant, an increase in short-run aggregate supply will:单项选择题

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