Answer
a) in the short run, in the long run
Work Step by Step
Increases in the aggregate demand for goods only affect output in the short run (to adjust for the shifted demand). The price level is affected in the long run.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 33 - Part XII - Aggregate Demand and Aggregate Supply - Quick Check Multiple Choice - Page 742: 4
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