In the long run,an increase in AD will result in:
A) no change in the aggregate price level.
B) an increase in the aggregate output level.
C) increases in both the aggregate price level and the aggregate output level.
D) an increase in the aggregate price level but no change in the aggregate output level.

Question

Quizplus · Accepted Answer

In the long run, the economy is at full employment, so an increase in aggregate demand (AD) leads to higher prices but not higher output, as output is determined by the economy's potential output.

In the Long Run,an Increase in AD Will Result In