In the real business cycle theory if longshyrun aggregate, Ask an Expert

Economics

In the real business cycle theory, if longrun aggregate supply increases, then longrun aggregate demand increases by

1) an equal amount, so that real output increases and the price level remains unchanged.

2) less than the amount of increase in aggregate supply, so that real output increases and the price level decreases.

3) more than the amount of increase in aggregate supply, so that real output increases and the price level increases.

4) an equal amount, so that both real output and the price level increase

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91696255

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