In the long run, an increase in the aggregate price level:
A) doesn't change real output.
B) decreases real output.
C) increases real output.
D) increases spending.

Question

Quizplus · Accepted Answer

In the long run, the economy is at full employment, and real output is determined by factors like technology and resources, not the price level. Thus, an increase in the aggregate price level doesn't change real output.

In the Long Run, an Increase in the Aggregate Price