Because of changes in the , the long- run effect of a $10 increase in investment on real GDP equals _ .

Name: Because of changes in the , the long- run effect of a $10 increase in investment on real GDP equals _ .
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Question

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In the long run, changes in the money wage rate and price level adjust to changes in investment, resulting in no significant effect on real GDP. Therefore, the long-run effect of a $10 increase in investment on real GDP is zero. Option D is the only option that reflects this.

Because of Changes in the , the Long- Run Effect