Which of the following is most likely to result in a temporary spurt in the growth of real output that cannot be maintained in the long run?
A) an anticipated increase in aggregate demand
B) an unanticipated increase in aggregate demand
C) an increase in long-run aggregate supply (LRAS)
D) an increase in resource prices relative to product prices

Question

Quizplus · Accepted Answer

An unanticipated increase in aggregate demand may result in a temporary spurt in the growth of real output. However, in the long run, the economy will adjust and return to its natural level of output. Anticipated increases in aggregate demand, increase in LRAS, and increase in resource prices relative to product prices may have long-term effects on real output growth.

Which of the Following Is Most Likely to Result in a Temporary