Ask Question
21 April, 06:11

Assume that the economy is in long-run equilibrium with complete information and that input prices adjust rapidly to changes in the prices of goods and services. If there is a sudden rise in the price level induced by an increase in aggregate demand, real GDP will ▼ increase not change decrease.

+3
Answers (1)
  1. 21 April, 06:54
    0
    No change

    Explanation:

    If an economy is in long-run equilibrium which means the economy will adjust itself and will adjust rapidly. Overall, if there is a change in the price level due to the increase in aggregate demand, the overall real GDP will remain the same. The GDP is the gross domestic product which will change if there is a variation in the overall domestic production.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that the economy is in long-run equilibrium with complete information and that input prices adjust rapidly to changes in the prices ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers