AD / AS Diagrams

Readers Question: Which of the following, other things the same, would make the price level decrease and real GDP increase?

A. long-run aggregate supply shifts right
B. long-run aggregate supply shifts left
C. aggregate demand shifts right
D. aggregate demand shifts left

Diagram of AS shift to the right

In this diagram the AS curve shifts to the right, increase Real Output and decreasing the price level. This could occur due to increased productivity, better technology or improved supply side policies in the economy.