Question

In the classical conception of
macroequilibrium, in the long-
run, any increase in aggregate
demand will result in which of
the following?
A. unemployment
B. demand-pull inflation
C. deflation
D. cost-push inflation

Answer 1

Final answer:

In the neoclassical model, any increase in aggregate demand leads to demand-pull inflation, resulting in a rise in the price level while real GDP and unemployment rates remain unchanged in the long run.

Explanation:

In the neoclassical model, when there is a rapid increase in aggregate demand, in the long run, it leads to inflationary pressures only. This means that any increase in aggregate demand will result in demand-pull inflation, causing the price level to rise but real GDP and the rate of unemployment stay constant, adjusting to their natural rates.

Learn more about Neoclassical model of macroequilibrium here:

https://brainly.com/question/38848671