Suppose an economy is in long-run equilibrium. an increase in consumption expenditure will

When an economy is at long-run equilibrium it means the employment rate is equivalent to the natural employment rate, the actual price level being equal to the objected or anticipated price level and the GDP is at the potential output. Therefore, an increase in consumer expenditure will cause an increase in the price level but will have no effect of the GDP in the long run. The demand curve will shift rightward and increase the out put in the long run.

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