When We Study the Adjustment Process in Macroeconomics,what Assumption Are

question 19

Multiple Choice

When we study the adjustment process in macroeconomics,what assumption are we making about potential output,Y*?

• A)potential output is adjusting to changes in factor prices
• B)potential output is adjusting to changes in factor supplies
• C)potential output is adjusting to changes in technology
• D)potential output is constant
• E)potential output is not relevant to the analysis of the adjustment process

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