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If the Economy Is in Equilibrium at Full Employment, an Increase

Question 1

Multiple Choice

If the economy is in equilibrium at full employment, an increase in aggregate demand will:


A) increase both the price level and the level of output in the long run.
B) increase the price level and leave the level of output unchanged in the long run.
C) decrease the price level and leave the level of output unchanged in the long run.
D) decrease both the price level and the level of output in the long run.

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