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2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts

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Question 30

An economy is currently operating at its full-employment limit. If there is no change in its long-run aggregate supply, a sustained expansion in aggregate demand is most likely to cause a long-run increase in

real GDP.

the price level.

labor productivity.

the level of employment.

2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts Questions

  1. A Level
  2. /Economics
  3. /2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts