If the economy is in long run equilibrium and aggregate demand increases, then in the short run
A. nothing happens because the economy is in long run equilibrium.
B. the price level rises and real GDP does not change.
C. real GDP increases and the price level does not change.
D. the price level rises and real GDP increases.
Answer:D
If the economy is in long run equilibrium and aggregate demand increases, then in the short run
A. nothing happens because the economy is in long run equilibrium. B. the price level rises and real GDP does not change. C. real GDP increases and the price level does not change. D. the price level rises and real GDP increases.