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An increase in aggregate demand has what outcome on price level and output with respect to long-run equilibrium?

User Leebutts
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2 Answers

4 votes

Answer:

real GDP will remain the same and price level will increase

Step-by-step explanation:

Long-run equilibrium occurs at the intersection of the aggregate demand curve and the long-run aggregate supply curve. Because the long-run supply curve is vertical, output does not change. Therefore, when the aggregate demand curve shifts to the right, Real GDP will remain the same but price level will increase

User Ingweland
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5.2k points
1 vote

Answer:

real GDP will remain the same and price level will increase

Step-by-step explanation:

User Hendra Jaya
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