Consider the AD/AS Model

question 65

Multiple Choice

Consider the AD/AS model.In the long run,after factor prices have fully adjusted to any output gaps,real GDP

• A)and the price level are determined by aggregate demand.
• B)and the price level are determined by "long-run aggregate supply."
• C)is determined by aggregate demand and the price level by potential output.
• D)is determined by potential output and the price level by aggregate demand.
• E)is determined by AD and the price level is determined by the AS curve.

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