In a long- run equilibrium, an increase in the quantity of capital leads to
A) a decrease in the equilibrium price level and an increase in equilibrium real GDP.
B) no change in the equilibrium price level, but an increase in equilibrium real GDP.
C) a decrease in the equilibrium price level, but no change in equilibrium real GDP.
D) an increase in the equilibrium price level and an increase in equilibrium real GDP.
Correct Answer:
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Q7: In the macroeconomic long run,
A) real GDP
Q49: Economic growth is BEST defined as
A)rightward shifts
Q50: Full- employment equilibrium occurs
A)when potential GDP exceeds
Q51: Q52: According to the intertemporal substitution effect, when Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents