What is the relationship between the price level and the level
of output in the long run?
When the price level rises, output decreases.
The relationship depends on how quickly producers respond to
changes in prices.
There is no relationship between the price level and the level
of output.
In the short run, what happens to the level of output when the
government increases its spending?
Aggregate demand shifts inward, decreasing the equilibrium
level of output.
Aggregate demand shifts outward,...