In a Long- Run Equilibrium, an Increase in the Quantity

question 104

Multiple Choice

In a long- run equilibrium, an increase in the quantity of capital leads to

• A)a decrease in the equilibrium price level and an increase in equilibrium real GDP.
• B)no change in the equilibrium price level, but an increase in equilibrium real GDP.
• C)a decrease in the equilibrium price level, but no change in equilibrium real GDP.
• D)an increase in the equilibrium price level and an increase in equilibrium real GDP.

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