Economists generally agree that in the long run changes in aggregate demand affect
A)aggregate output but not the price level.
B)the price level but not aggregate output.
C)both the price level and aggregate output.
D)neither the price level nor aggregate output.

Question

Quizplus · Accepted Answer

In the long run, changes in aggregate demand are believed to affect the price level due to inflationary or deflationary pressures, but not aggregate output, which is determined by factors like technology, resources, and labor supply, according to classical economic theory.

Economists Generally Agree That in the Long Run Changes in Aggregate