The European central bank is located in Frankfurt, Germany

If the economy is in long run equilibrium and aggregate demand increases, then in the short run

A) nothing happens because the economy is in long run equilibrium. B) the price level rises and real GDP does not change. C) real GDP increases and the price level does not change. D) the price level rises and real GDP increases.

An external benefit is a benefit that ________

A) is enjoyed by someone other than the buyer of a good B) always equals external cost C) experiences increasing marginal returns D) is greatest at the equilibrium point