In the macroeconomy,demand-side shifts change:
A)only the price level in the long run,while output eventually returns to its long-run potential level.
B)only the output level in the long run,while prices eventually return to its long-run potential level.
C)aggregate demand only,which eventually shifts back in the long run.
D)aggregate demand only,which is why the price level remains unaffected in the long run.

Question

Quizplus · Accepted Answer

In the long run, demand-side shifts affect only the price level, as output returns to its potential level due to the economy's self-correcting mechanism.

In the Macroeconomy,demand-Side Shifts Change