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

Question

Quizplus · Accepted Answer

Changes in prices of goods and services paid by consumers have no effect on the macroeconomy in the long run because the economy will adjust to the new price level. Aggregate supply and aggregate demand will both shift to accommodate the new price level, and the economy will return to equilibrium.

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