Question: a. In the long run, does real GDP increase by more than, less than, or the same amount as the immediate increase in the quantity

a. In the long run, does real GDP increase by more than, less than, or the same amount as the immediate increase in the quantity of real GDP demanded?
b. Explain how the price level changes in the long run.

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a In the long run real GDP equals potential GDP so ... View full answer

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