​ Exhibit 10A-3 Macro AD-AS Model

question 48

Multiple Choice

​
Exhibit 10A-3 Macro AD-AS Model

In Exhibit 10A-3, the level of real GDP associated with Y₁: ​

• A) ​is equal to potential real GDP.
• B) ​is an inflationary gap real GDP.
• C) ​is a long-run equilibrium.
• D) ​is caused by flexible wages and prices.

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