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:

Verified
Correct Answer:
Verified
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