Beginning at a Long-Run Equilibrium, an Increase in Aggregate Demand

question 10

Multiple Choice

Beginning at a long-run equilibrium, an increase in aggregate demand

• A)increases the price level and in the long run increases real GDP.
• B)increases the price level and in the long run decreases real GDP.
• C)decreases the price level and in the long run increases real GDP.
• D)decreases the price level and in the long run decreases real GDP.
• E)increases the price level, but in the long run there is no change in real GDP.

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