Author Question: If the economy is in long run equilibrium and then aggregate demand increases, in the long run the ... (Read 84 times)

yoroshambo · **on:** Jun 29, 2018

If the economy is in long run equilibrium and then aggregate demand increases, in the long run the increase in aggregate demand means that the

A) price level will be higher but real GDP will be unaffected.
B) real GDP will be larger but the price level will be unaffected.
C) the price level will be higher and real GDP will be larger.
D) neither the price level nor real GDP will be unaffected.

Question 2

A single-price monopolist

A) sets its price where its demand is inelastic.
B) can always increase its profits by increasing its price.
C) has its marginal revenue less than its price.
D) is guaranteed an economic profit.