What Is the Impact When AD Shifts Permanently to the Right

question 131

Multiple Choice

What is the impact when AD shifts permanently to the right?

• A)Cyclical unemployment will be lower in the short run than in the long run.
• B)LRAS will shift in response to the expansionary gap.
• C)Real output will rise in the short run but not in the long run.
• D)The price level will rise in the short run but not in the long run.

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