In the long run,changes in prices of goods and services paid by consumers:
A)have no effect on the macroeconomy.
B)have no effect on aggregate supply.
C)have no effect on aggregate demand.
D)All of these are true.

Question

Quizplus · Accepted Answer

Changes in prices of goods and services paid by consumers can have an effect on the macroeconomy, aggregate supply, and aggregate demand. When prices increase, it can lead to inflation which can impact the purchasing power of consumers and influence their spending patterns. Inflation can also impact businesses and their production costs, ultimately affecting aggregate supply. Additionally, changes in consumer prices can impact aggregate demand as it can impact consumer spending and their willingness to purchase goods and services at a certain price point.

In the Long Run,changes in Prices of Goods and Services