Assume that the economy is in long-run equilibrium with complete information and that input prices adjust rapidly

Question:

Assume that the economy is in long-run equilibrium with complete information and that input prices adjust rapidly to changes in the prices of goods and services. If there is a rise in the price level induced by an increase in aggregate demand, what happens to real GDP?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

Question Posted: