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Suppose the economy is in its long run equilibrium. If there is an increase in investment, what happens in the
Suppose the economy is in its long run equilibrium. If there is an increase in investment, what happens in the
short run?
Price level rises and output rises
Price level falls and output rises
Price level rises and output falls
Price level falls and output falls
Not enough information
From the previous question, what happens in the long run (relative to the initial equilibrium)?
Price level falls and output is unchanged
Price level rises and output is unchanged
Price level rises and output falls
Price level falls and output falls
Not enough information
