How does an increase in the price level affect the quantity of real GDP supplied in the long run? OA. In the long run, an increase in the price level will increase real GDP OB. In the long run, an increase in the price level decreases inflation, which will decrease real GDP OC. In the long run, an increase in the price level increases inflation, which will decrease real GDP OD. Changes in the price level do not affect the level of GDP in the long run. Price level (GDP deflator) 123 113- 103- Long-Run Aggregate Supply LRAS LRAS22 LRAS23 Real GDP (trillions of $)

How does an increase in the price level affect the quantity of real GDP supplied in the long run? OA. In the long run, an increase in the price level will increase real GDP OB. In the long run, an increase in the price level decreases inflation, which will decrease real GDP OC. In the long run, an increase in the price level increases inflation, which will decrease real GDP OD. Changes in the price level do not affect the level of GDP in the long run. Price level (GDP deflator) 123 113- 103- Long-Run Aggregate Supply LRAS LRAS22 LRAS23 Real GDP (trillions of $)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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