If the Economy Is Initially in Long-Run Equilibrium, Which of the Following

question 95

Multiple Choice

If the economy is initially in long-run equilibrium, which of the following best describes the effects of a shift in aggregate demand?

• A)Prices and output are affected in both the short and long run.
• B)Prices and output are affected only in the short run.
• C)Prices are affected in the long and short run, but output only in the short run.
• D)Prices are affected in the long and short run, but output only in the long run.

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