Compared to the Initial Equilibrium,an Initial Increase in Aggregate Demand

question 175

Multiple Choice

Compared to the initial equilibrium,an initial increase in aggregate demand that is NOT followed by an increase in the quantity of money results in new long-run equilibrium with

• A)the same price level and the same real GDP.
• B)a higher price level but the same real GDP.
• C)the same price level and a lower level of real GDP.
• D)a higher price level and an increased level of real GDP.
• E)None of the above answers is correct.

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