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6 January, 16:47

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

a. real GDP will increase and price level will decrease

b. real GDP will decrease and price level will increase

c. real GDP will remain the same and price level will decrease

d. real GDP will remain the same and price level will increase

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Answers (2)
  1. 6 January, 17:01
    0
    a. real GDP will increase and price level will decrease

    Explanation:

    Aggregate demand and real GDP on the long run are calculated the same and are mostly the same things, because one is the cost and price of all the products, services and government investments that a country experiences in a certain period of time, and the other is the demand for those services, aggregate demand and price level have an inverse correlation in which when aggregate demand rises, the price level often decreases.
  2. 6 January, 17:30
    0
    D. Real GDP will remain the same and price level will increase

    Explanation:

    I just answered this one and got it wrong box of the first person who answered it but D is the right choice
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Home » Business » An increase in aggregate demand has what outcome on price level and output with respect to long-run equilibrium? a. real GDP will increase and price level will decrease b. real GDP will decrease and price level will increase c.
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