AP® Macroeconomics

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Moderate

Increase in Housing Prices in the AD/AS Model

APMACR-EAJXOS

Housing prices in country X have increased. All else equal, how would this affect the short-run equilibrium price level and output?

A

The price level would increase and output would decrease.

B

The price level would increase and output would increase.

C

The price level would increase and output would stay the same.

D

The price level would decrease and output would increase.

E

The price level would decrease and output would decrease.