According to the aggregate supply curve, what happens as the price level increases? Profits decrease. Firms have more of an incentive to increase output. Real GDP falls. Consumers increase their spending.

Which of the following describes an effect of world war ll on the united states economy a. automobile companies produced a record number of cars b. many factories had to expand to produce military equipment c. the airplane industry suffered as the allies began using airplanes in combat d.cities with shipyards declined because so many ships had been sent overseas.