Suppose an economy is in long-run equilibrium when housing prices increase causing household wealth to increase. As a result Multiple Choice aggregate demand will increase and real GDP will decrease in the short run. aggregate supply will increase and real GDP will decrease in the short run. aggregate demand will increase and real GDP will increase in the short run. aggregate supply will decrease and real GDP will decrease in the short run.
Suppose an economy is in long-run equilibrium when housing prices increase causing household wealth to increase. As a result Multiple Choice aggregate demand will increase and real GDP will decrease in the short run. aggregate supply will increase and real GDP will decrease in the short run. aggregate demand will increase and real GDP will increase in the short run. aggregate supply will decrease and real GDP will decrease in the short run.
Chapter14: Aggregate Demand And Supply
Section: Chapter Questions
Problem 9SQP
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Suppose an economy is in long-run equilibrium when housing prices increase causing household wealth to increase. As a result Multiple Choice
aggregate demand will increase and real
aggregate demand will increase and real GDP will increase in the short run.
aggregate supply will decrease and real GDP will decrease in the short run.
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