In Long-Run Macroeconomic Equilibrium

question 73

Multiple Choice

In long-run macroeconomic equilibrium

• A) real GDP equals potential GDP.
• B) the price level is fixed and aggregate demand determines real GDP.
• C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand and long-run aggregate supply is irrelevant.
• D) real GDP is less than potential GDP.

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Definitions:

Arrows

Often represents direction or movement, and in logical diagrams, can indicate the flow or progression of an argument or process.

Nutrition

The process of providing or obtaining the food necessary for health and growth.

Worms

Invertebrate animals with a long, soft body without limbs, found in many environments.

Birds Depend

The ecological principle that birds' survival and reproductive success depend on various environmental factors.