In the long run, a leftward shift of the aggregate demand curve will lead to a(n):
a. increase in equilibrium output but will not change the price level in an economy.
b. increase in the price level as well as the equilibrium output in an economy.
c. decrease in the price level but will leave the equilibrium output unchanged in an economy.
d. increase in the price level but will leave the equilibrium output unchanged in an economy.
e. decrease in the price level as well as the equilibrium output in an economy.
c
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Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day, while Ben can produce only 3 Ms or 3 Ss in a day. Which statement below is true?
A) Ann is the most efficient producer of spiritual goods. B) Ann is the most efficient producer of material goods. C) Ben is the least efficient producer of spiritual goods. D) All of the above are true.
A price floor is the minimum price that consumers have to pay for a particular product
a. True b. False Indicate whether the statement is true or false