An Initial Increase in Aggregate Demand That Is NOT Followed

question 299

Multiple Choice

An initial increase in aggregate demand that is NOT followed by an increase in the quantity of money results in a long-run equilibrium with

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