In the Extended Aggregate Demand-Aggregate Supply Model

question 33

Multiple Choice

In the extended aggregate demand-aggregate supply model,

• A) long-run equilibrium occurs wherever the aggregate demand curve intersects the short-run aggregate supply curve.
• B) the long-run aggregate supply curve is horizontal.
• C) the level of real output is the same in the long run regardless of the location of the aggregate demand curve.
• D) the short-run aggregate supply curve is downsloping.