Answered: Your answer must be wrong," a fellow…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 15QP

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1) "Your answer must be wrong," a fellow classmate says. "The question is asking about the long run, but you say both the price level and real output change. That can't be true -- only prices change in the long run!"

Your fellow classmate is

Group of answer choices

incorrect; this is only true when the AS curve is shifting.

correct; In the long run, only prices can change from any shift.

correct; only a change in government policy can change both prices and output in the long run.

incorrect; this is only true when the AD curve is shifting

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