Question:medium

An increase in Aggregate Demand with constant Aggregate Supply generally leads to:

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If the economy is already at "Full Employment," output cannot increase further. In that specific case, an increase in AD would only lead to a rise in prices (Inflationary Gap).
Updated On: May 13, 2026
  • Fall in price level
  • Rise in unemployment
  • Rise in output and prices
  • Fall in national income
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The Correct Option is C

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