Starting from long run equilibrium, in response to a decrease in AD:
a. The price level will increase more in the long run than in the short run
b. The short run equilibrium level of real output will be greater in the long run than in the short run.
c. Neither the price level nor real output will change in the long run.
d. Both a. and b. are correct
b
Economics
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Investment, as defined by economists, would not include which of the following? Ford
A) buys a new robotic machine (from a plant in Ohio) to assemble cars. B) builds another assembly plant in the United States. C) buys U.S. government bonds. D) adds 1,000 new cars to inventories.
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If the price elasticity of supply is zero, the supply curve is a horizontal line parallel to the quantity axis
a. True b. False Indicate whether the statement is true or false
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