Multiple Choice
Suppose the economy is initially in long-run equilibrium.After an increase in aggregate demand, which of the following describes the state of the economy in the long run?
A) Prices are higher, and output is higher.
B) Prices are lower, and output is lower.
C) Prices are higher, and output is the same.
D) Prices are the same, and output is lower.
Correct Answer:
Verified
Correct Answer:
Verified
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