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If the economy is in long - run equilibrium, other things being equal, an increase in AD will: b . Reduce the price level and

If the economy is in long

-

run equilibrium, other things being equal, an increase in AD will:

.

Reduce the price level and increase real GDP

.

Raise the price level but real GDP will remain unchanged

.

Increase real GDP but leave the price level unchanged

.

Raise the price level and increases real GDP

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