Solved

In a Long- Run Equilibrium, an Increase in the Quantity

Question 104

Multiple Choice

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


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

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions