Question: 45. Starting at a full-employment equilibrium, the only long-term effect of an increase in aggregate demand will be an increase in the ____________ level.

45. Starting at a full-employment equilibrium, the only long-term effect of an increase in aggregate demand will be an increase in the ____________ level.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Macroeconomics Questions!

Write 2 paragraphs about Macro risks and the term structure of interest rates article. No max word count, page count, or formatting requirements but has to be submit to my tutor's work as my own....

Starting at a full-employment equilibrium, the only long- term effect of an increase in aggregate demand will be an increase in the _____________________ level.

True or False: 1. The government can use fiscal policy to stimulate the economy out of a recession or to try to bring inflation under control. 2. When tax revenues are greater than government...

macroeconomics 7. Assume a country's economy is currently in long-run equilibrium. What is the long-run effect of an increase in aggregate demand? (A) A decrease in the unemployment rate (B) A...

022-02-13 6.52.29 Mies level The two figures below show the aggregate demand/supply and the government budget line for the economy of Mahdi. The budget line is simply the difference between...

24) During a recession, spending on ________ tends to fall more dramatically than spending on ________. A) nondurable goods; durable goods B) food; cars C) necessities; luxuries D) durable goods;...

If there is an equal increase in aggregate demand and aggregate supply: A?the price level rises and real output decreases. B?the price level rises rapidly and there is little change in real output....

ECON1A: Macroeconomics Final Exam: Chapter 8-10, 12, 13 Dr. Sung H. Kim Please do not write down anything on the test. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or...

QUESTION 26 An economy that is an active participant in international trade is an economy whose currency value fluctuates widely. an open economy. an egalitarian economy. a closed economy. 2 points...

The two figures below show the aggregate demand/supply and the government budget line for the economy of Mahdi. The budget line is simply the difference between government net tax revenues (1) and...

Last year, Cul de sac Co. had sales of $740,000, based on a unit selling price of $200. The variable cost per unit was $120, and fixed costs were $260,000. The maximum sales within Cul de sacs...

Sodium carbonate (Na2CO3) is available in very pure form and can be used to standardize acid solutions. What is the molarity of a HCl solution if 28.3 mL of the solution are required to react with...

Pension trust funds are reported in the fiduciary funds of the government only if the city acts as trustee for the retirement plan. Is that correct

In this exercise, assume that we are considering enhancing a machine by adding vector hardware to it. When a computation is run in vector mode on the vector hardware, it is 10 times faster than the...