Suppose the amount of human and natural resources in an economy increase. Which one of the following would be the long-run effect? GDP Deflator decreases, no change in RGDP GDP Deflator increases, RGDP increases GDP Deflator increases, no change in RGDP GDP Deflator decreases, RGDP increases

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 7E
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Suppose the amount of human and natural resources in an economy increase. Which one of the following would be the long-run effect?

GDP Deflator decreases, no change in RGDP

GDP Deflator increases, RGDP increases

GDP Deflator increases, no change in RGDP

GDP Deflator decreases, RGDP increases 

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