Question

Starting from long-run equilibrium, an increase in autonomous investment results in ____ output in the short run and _____ output in the long run.

Answer 1

higher and potential output

Step-by-step explanation:

Starting from long-run equilibrium, an increase in autonomous investment results in higher output in the short run and potential output in the long run.

This is because in concept of economics the long run the prices are at equilibrium and the highest level of real gross domestic product is been attained in contrast to the shortrun where the autonomous investment in increased output than that of before.