Which of the Following Statements Concerning the Long-Run Aggregate Demand

Multiple Choice

Which of the following statements concerning the long-run aggregate demand and supply model is true?

A) An increase in aggregate demand increases real GDP only temporarily.
B) An increase in aggregate demand increases real GDP by a multiple of the initial increase in expenditures.
C) Prices are fixed.
D) Output change that results from a change in aggregate demand is a permanent effect.
E) A change in aggregate demand leads to a permanent change of higher output.