Which of the Following Is a Defining Assumption of the AD/AS

question 21

Multiple Choice

Which of the following is a defining assumption of the AD/AS macro model in the long run?

• A)Factor supplies are assumed to be fixed.
• B)Technology used in production is constant.
• C)The level of potential output is constant.
• D)Factor prices are assumed to be fixed.
• E)Changes in real GDP are determined by the changes in potential output.

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