What is likely to happen if a new aggregate demand curve moves to the right? Prices and output would drop, and the equilibrium point will stay the same. Prices would rise, and output would drop in the short run. Prices and output would rise, and the equilibrium point will change. Prices would rise, and output would drop in the long run.
Prices and output would rise, and the equilibrium point will change.
When an aggregate demand curve moves to the right, it shows that there are improvements in the economy. It also shows that the unemployment rate is low, there is a lower inflation rate and production of goods and services are relatively high and at a low price.
