In the Long Run, as Potential GDP Grows at a Steady

question 27

Multiple Choice

In the long run, as potential GDP grows at a steady pace and nominal money supply is continuously increased over time

• A)the level of output is essentially determined by shifts in the AS-curve
• B)the level of output is essentially determined by shifts in the AD-curve
• C)the price level will not change since the AS-curve is horizontal
• D)real money balances continuously decrease as the AD-curve remains constant
• E)the price level is determined solely by the shift in the AS-curve

---

Definitions:

Fourteenth Amendment

An amendment to the U.S. Constitution granting citizenship to all persons born or naturalized in the United States, and guaranteeing all citizens equal protection under the laws.

Due Process Clause

A clause in the Fifth and Fourteenth Amendments of the United States Constitution ensuring legal protections and fairness, including the requirement for proper legal procedures and the protection of individual rights.

National Government

The organization through which political authority is exercised at the national level, governing the entirety of a country.

State Governments

These are the governments of the individual states within a federal system, each having its own constitution and the authority to legislate on matters not reserved for the federal government.