Starting from long run equilibrium, in response to a decrease in AD:The price level will increase more in the long run than in the short run.

Starting from long run equilibrium, in response to a decrease in AD:

a.​ The price level will increase more in the long run than in the short run.

b.​ The short run equilibrium level of real output will be greater in the long run than in the short run.

c.​ Neither the price level nor real output will change in the long run.

d.​ Both a. and b. are correct

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