Economics · Aggregate Supply and Demand
When the Long-Run Aggregate Supply (LRAS) curve is vertical, a rightward shift in the Aggregate Demand (AD) curve results in:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A negative effect upon output and no change in price level
- 2No effect upon output and an increase in the price level only✓
- 3A positive effect upon output and a decrease in price level
- 4A negative effect upon output and an increase in price level
Correct answer
No effect upon output and an increase in the price level only
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