Which of the Following Statements About the AD/AS Macro Model

question 99

Multiple Choice

Which of the following statements about the AD/AS macro model in the long run is correct?

• A)Both real GDP and the price level are determined by aggregate demand.
• B)Both real GDP and the price level are determined by Y*.
• C)Long-run real GDP is determined by Y* and the long-run price level by the AD curve.
• D)Real GDP is determined by aggregate demand and the price level by Y*.
• E)Long-run real GDP is determined by aggregate demand and the price level is determined solely by the AS curve.