In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in...

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In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in...

In the long run, an increase in AD will result in:

	A.	no change in the aggregate price level.
	B.	increases in both the aggregate price level and the aggregate output level.
	C.	increase in the aggregate output level.
	D.	an increase in the aggregate price level but no change in the aggregate output level.

business economics

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Answer 1

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Option D

an increase in the aggregate price level but no change in the aggregate output level

the increase in AD shifts the AD curve to right but the LRAS curve is vertically sloped at the long-run output level so the output does not change but the price level increases as the curve cut P above the old price level

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Answer 2

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In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in...

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Homework Answers

Add Answer to: In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in...

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In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in...