The long-run level of real GDP changes whenever the aggregate demand curve shifts.

Name: The long-run level of real GDP changes whenever the aggregate demand curve shifts.
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Question

Quizplus · Accepted Answer

The long-run level of real GDP is determined by factors such as technological progress and increases in the labor force and capital stock, and is not affected by shifts in the aggregate demand curve. In the long run, changes in aggregate demand only affect the price level, not the level of real GDP.

The Long-Run Level of Real GDP Changes Whenever the Aggregate