In a new initiative to promote exercise, the Australian government spends a lot of money building and renovating parks around the country. The economy was initially in long-run equilibrium. In the short run, the aggregate demand curve shifts right. In the long run the price level decreases, output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, output returns to its potential, and real wages do not change.

In a new initiative to promote exercise, the Australian government spends a lot of money building and renovating parks around the country. The economy was initially in long-run equilibrium. In the short run, the aggregate demand curve shifts right. In the long run the price level decreases, output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, output returns to its potential, and real wages do not change.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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