In the Long Run in the AD/AS Macro Model We

question 97

Multiple Choice

In the long run in the AD/AS macro model we can say that

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

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Definitions:

Insurance Policy

A contract between the insurer and the insured, which outlines the claims which the insurer is legally required to pay in exchange for the premium.

Net Income

The profit a company generates after deducting all costs, expenses, and taxes from its total revenue.

Accrued Revenue

Revenue that has been earned, but not yet received in cash or recorded in the accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for accurate financial reporting.