In the long run, an increase in aggregate demand will lead to
A. A higher price level and an increase in real GDP.
B. A decrease in real GDP.
C. A higher price level only.
D. An increase in real GDP only.
Answer: C
Economics
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What characterizes a competitive equilibrium?
A) Markets are rationed. B) Governments stay out of the market. C) Economic agents are price-takers. D) It is costly to experiment with policies.
Economics
If Option A costs $40 and yields 20 units of output, and Option B costs $50 and yields 20 units of output,
A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is not possible to determine which option is more economically efficient.
Economics