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This post addresses a macroeconomics practice question.

If the AS curve shifts to the right, what happens ("increases" or "decreases") to
(a) The equilibrium rate of output?
(b) The equilibrium price level?

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(a) The equilibrium rate of output? -- INCREASE

If the AS curve shifts to the right, the price decreases which causes an increase in the amount of equilibrium output. The equilibrium output level is the exact point where supply and demand intersect. When the AS curve goes rightward, it increases the point of ...

Solution Summary

The solution answers and explains the following macroeconomics practice question:

If the AS curve shifts to the right, what happens ("increases" or "decreases") to
(a) The equilibrium rate of output?
(b) The equilibrium price level?

$2.19