If aggregate demand increases, aggregate supply will increase only when there is(are)

Excess capacity

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Under utilisation of the existing resources

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Over utilisation of the existing resources

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Both A and B

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Solution

The correct option is D
Both A and B

If aggregate demand increases, aggregate supply will increase only when there are an excess capacity and under-utilisation of the existing resources.

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Similar questions

Explain the changes that take place when Aggregate Demand and Aggregate Supply are not equal.

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