Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:

Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:

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 Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:

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increase the price level in the long run but have no effect on real gross domestic product. 

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shift the aggregate demand curve rightward and increase the real output in the long run. 

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shift the short-run aggregate supply curve rightward and increase both the price level and real output in the long run.

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decrease both the price level and real gross domestic product in the long run.

 

 
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