Over the long run, a surge in aggregate demand from a neoclassical perspective will most likely result in:
A. a rise in level of output.
B. an increase in price level.
C. downward pressure on the price level.
D. pressure for a lower level of inflation.
Answer:B
Over the long run, a surge in aggregate demand from a neoclassical perspective will most likely result in:
A. a rise in level of output. B. an increase in price level. C. downward pressure on the price level. D. pressure for a lower level of inflation.
Explanation: Type: Multiple Choice