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In the Long-Run Equilibrium, an Increase in the Quantity of Capital

Question 356

Multiple Choice

In the long-run equilibrium, an increase in the quantity of capital leads to


A) a decrease in the equilibrium price level, but no change in equilibrium real GDP.
B) a decrease in the equilibrium price level and an increase in equilibrium real GDP.
C) no change in the equilibrium price level, but an increase in equilibrium real GDP.
D) an increase in the equilibrium price level and an increase in equilibrium real GDP.

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