Your answer must be wrong," a fellow classmate says. "The question is asking about the long run, but you say both the price level and real output change. That can't be true -- only prices change in the long run!" Your fellow classmate is Group of answer choices incorrect; this is only true when the AS curve is shifting. correct; In the long run, only prices can change from any shift. correct; only a change in government policy can change both prices and output in the long run.
Your answer must be wrong," a fellow classmate says. "The question is asking about the long run, but you say both the price level and real output change. That can't be true -- only prices change in the long run!" Your fellow classmate is Group of answer choices incorrect; this is only true when the AS curve is shifting. correct; In the long run, only prices can change from any shift. correct; only a change in government policy can change both prices and output in the long run.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1) "Your answer must be wrong," a fellow classmate says. "The question is asking about the long run, but you say both the
Your fellow classmate is
Group of answer choices
incorrect; this is only true when the
correct; In the long run, only prices can change from any shift.
correct; only a change in government policy can change both prices and output in the long run.
incorrect; this is only true when the AD curve is shifting
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