Question: Suppose that during a given year, the quantity of U.S. real GDP that can be produced in the long run rises from $14.9 trillion to

Suppose that during a given year, the quantity of U.S. real GDP that can be produced in the long run rises from $14.9 trillion to $15.0 trillion, measured in base-year dollars. During the year, no change occurs in the various factors that influence aggregate demand. What will happen to the U.S. long-run equilibrium price level during this particular year?

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An increase in the long run GDP from 149 to 15 trillion will shift the LRAS curve towards its right ... View full answer

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