Figure 7-2 -Refer to Figure 7-2. Changes in aggregate demand from AD₁ to either AD₂ or AD₃ A) will change nominal GDP but will not change real GDP in the long run. B) will change real GDP but will not change nominal GDP in the long run. C) will change the potential level of real GDP. D) will change the price level and real GDP.

Question

Quizplus · Accepted Answer

In the long run, changes in aggregate demand affect nominal GDP due to price level changes, but real GDP remains at its potential level.

Figure 7-2 -Refer to Figure 7-2. Changes in Aggregate Demand from AD1

Figure 7-2 -Refer to Figure 7-2. Changes in Aggregate Demand from AD₁