In the long run,shifts in the aggregate demand curve affect the price level but not the level of output.
Because the AS curve is vertical in the long run,a change to AD,which intersects the vertical AS curve at a different point,will result in a change in the price level only.

Question

Quizplus · Accepted Answer

In the long run, the level of output is determined by factors like technology, capital, and labor, which are represented by the vertical AS curve. As a result, changes to the AD curve only affect the price level in the long run.

In the Long Run,shifts in the Aggregate Demand Curve Affect