QuestionJuly 28, 2025

4. A rightward shift in the aggregate supply curve should result in lower price level and a higher unemployment rate. lower price level and a lower unemployment rate. higher price level and a greater unemployment. higher price level and a lower unemployment rate.

4. A rightward shift in the aggregate supply curve should result in lower price level and a higher unemployment rate. lower price level and a lower unemployment rate. higher price level and a greater unemployment. higher price level and a lower unemployment rate.
4. A rightward shift in the aggregate supply curve should result in
lower price level and a higher unemployment rate.
lower price level and a lower unemployment rate.
higher price level and a greater unemployment.
higher price level and a lower unemployment rate.

Solution
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Answer

Lower price level and a lower unemployment rate. Explanation 1. Understand Aggregate Supply Shift A rightward shift in the aggregate supply curve indicates an increase in total production at every price level. 2. Analyze Effects on Price Level and Unemployment Increased supply typically leads to a **lower price level** due to more goods being available. It also generally results in a **lower unemployment rate** as more workers are needed to produce the increased output.

Explanation

1. Understand Aggregate Supply Shift<br /> A rightward shift in the aggregate supply curve indicates an increase in total production at every price level.<br /><br />2. Analyze Effects on Price Level and Unemployment<br /> Increased supply typically leads to a **lower price level** due to more goods being available. It also generally results in a **lower unemployment rate** as more workers are needed to produce the increased output.
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