In the long-run persistent increases in aggregate demand will:

Question

BlackTom AI · Accepted Answer

Consider the basic macroeconomic idea that in the long run, aggregate supply is vertical at the economy’s potential real GDP, so persistent increases in aggregate demand primarily push up the price level rather than the quantity of output produced.

Option A: 'result in inflation with no changes in real GDP' — This aligns with the classical long-run view: money demand drives prices up (inflation), while real GDP returns to its potential and remains unchanged. The result is higher price level but unchanged real output.

Option B: 'inflation with no changes in nominal GDP' — Although inflation occurs, nominal GDP would not stay unchanged. Since nominal GDP is the product of the price level and real GDP, and real GDP is unchanged in the long run while prices rise, nominal GDP increases. Therefore this statement is incorrect.

Option C: 'deflation with no changes in nominal GDP' — Deflation contradicts the effect of a persistent increase in aggregate demand, which tends to raise prices, not lower them. Additionally, nominal GDP would move with price changes, so the claim of no change in nominal GDP is unlikely. This makes it incorrect.

Option D: 'deflation with no changes in real GDP' — Again, deflation is the wrong direction for a persistent AD increase, and real GDP would remain unchanged only in the sense of being at potential; the deflation part makes this option incorrect.

In summary, the only statement that matches the long-run outcome of a sustained AD increase is option A: inflation with no changes in real GDP.

In the long-run persistent increases in aggregate demand will:单项选择题

类似问题

Assuming other factors being constant, a fall in imports results in a fall in aggregate demand.

The downward slope of the aggregate-demand curve shows that:

Assuming other factors being constant, a rise in exports results in a fall in aggregate demand.

In the short run, a decrease in personal income taxes will result in _________________.

Suppose 𝑎 ¯ 𝑐 = 0.75 , 𝑎 ¯ 𝑖 = 0.18 , 𝑎 ¯ 𝑔 = 0.18 , 𝑎 ¯ 𝑒 𝑥 = 0.13 , and 𝑎 ¯ 𝑖 𝑚 = 0.17 . Aggregate demand is 𝑎 ¯ = ______.

Suppose the economy is initially in long-run equilibrium. A decrease in aggregate demand will

Using the aggregate demand-aggregate supply model, predict what happens in the short run when the consumer confidence index falls as consumers become pessimistic about their economic prospects.

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单