Suppose a sustained increase in aggregate demand causes the general price level in an economy to rise. Explain, according to classical economic theory, why this increase in the price level does not lead to a change in the level of real output in the long run.
31 exam-style questions on Edexcel A A Level Economics 2.3 Aggregate supply (AS), covering 2.3.1 The characteristics of AS, 2.3.2 Short-run AS, and 2.3.3 Long-run AS. Each one has a worked solution and a mark scheme showing where the marks go.