Compared to the initial equilibrium, an initial increase in aggregate demand that is NOT followed by an increase in the quantity of money results in new long-run equilibrium with
A) a higher price level but the same real GDP.
B) a higher price level and an increased level of real GDP.
C) the same price level and a lower level of real GDP.
D) the same price level and the same real GDP.
E) None of the above answers is correct.
A
Economics
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A) price per unit times quantity sold. B) change in price per unit times quantity sold. C) price per unit times quantity supplied. D) price per unit times change in quantity sold.
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"Leaning against the wind" is exemplified by a
a. tax cut when there is a recession. b. decrease in the money supply when there is a recession. c. decrease in government expenditures when there is a recession. d. All of the above are correct.
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