Demand-side shifts change:
A) the price level in the long run, while output eventually returns to its long-run potential level.
B) the output level in the long run, while prices eventually return to their long-run potential levels.
C) the price level in the short run, while output remains unaffected.
D) the output level in the short run, while prices remain unaffected.

Question

Quizplus · Accepted Answer

Demand-side shifts affect the price level in the long run, while output adjusts back to its long-run potential level, reflecting the economy's capacity to produce goods and services.

Demand-Side Shifts Change