Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:

A. ​increase the price level in the long run but have no effect on real gross domestic product.

B. shift the aggregate demand curve rightward and increase the real output in the long run.

C. shift the short-run aggregate supply curve rightward and increase both the price level and real output in the long run.

D. ​decrease both the price level and real gross domestic product in the long run.

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Divya Singh
Divya SinghLv10
2 Oct 2020

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