Sunday, April 3, 2016

In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?


In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP? 



#Parkin #11edition #AggregateSupply #AggregateDemand #Chapter27

Aggregate Supply, Aggregate Demand
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1 comment:

  1. Rully MangunsongApril 3, 2016 at 10:07 PM

    Answer:
    An increase in the price level has no effect on potential GDP. Potential GDP is independent of the price level, so increases or decreases in the price level have no effect on potential GDP.

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