In the long run,the aggregate demand curve determines the price level.

Name: In the long run,the aggregate demand curve determines the price level.
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Question

Quizplus · Accepted Answer

In the long run, changes in aggregate demand only affect the price level and not the level of output, which is determined by factors such as technology, resources, and institutions. Therefore, the aggregate demand curve plays a crucial role in determining the price level in the long run.

In the Long Run,the Aggregate Demand Curve Determines the Price