Any change in Aggregate Demand will have what effect in the Long-Run Classical Macroeconomic Equilibrium Model?

A. Only change the Real Output

B. Only change the Aggregate Price Level

C. Change both the Aggregate Price Level and the Real Output

Question

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Savanah Klein

3 January, 02:34

Any change in Aggregate Demand will have what effect in the Long-Run Classical Macroeconomic Equilibrium Model?

A. Only change the Real Output

B. Only change the Aggregate Price Level

C. Change both the Aggregate Price Level and the Real Output

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Answers (1)

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Amira Zimmerman · Answer 1

Answer: Only change the Aggregate Price Level

Explanation: In the Classical model, the Long-run level of output remains unchanged at the full employment level. So, any change in the Aggregate demand or Aggregate supply without any change in the long-run supply will only lead to a change in the aggregate price level in the economy.

Any change in Aggregate Demand will have what effect in the Long-Run Classical Macroeconomic Equilibrium Model?A. Only change the Real OutputB. Only change the Aggregate Price LevelC. Change both the Aggregate Price Level and the Real Output

Any change in Aggregate Demand will have what effect in the Long-Run Classical Macroeconomic Equilibrium Model?

A. Only change the Real Output

B. Only change the Aggregate Price Level

C. Change both the Aggregate Price Level and the Real Output