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

Name: The long-run level of RGDP changes whenever the aggregate demand curve shifts.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

The long-run level of RGDP is determined by factors such as technological progress and changes in the labor force, and it is not affected by changes in aggregate demand. In the long run, changes in aggregate demand only affect the price level, not the level of RGDP.

The Long-Run Level of RGDP Changes Whenever the Aggregate Demand