In the real business cycle theory if longshyrun aggregate


In the real business cycle theory, if long­run aggregate supply increases, then long­run aggregate demand increases by

1) an equal amount, so that real output increases and the price level remains unchanged.

2) less than the amount of increase in aggregate supply, so that real output increases and the price level decreases.

3) more than the amount of increase in aggregate supply, so that real output increases and the price level increases.

4) an equal amount, so that both real output and the price level increase

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Business Economics: In the real business cycle theory if longshyrun aggregate
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