In the Long Run, as Potential GDP Grows at a Steady

Multiple Choice

In the long run, as potential GDP grows at a steady pace and nominal money supply is continuously increased over time

A) the level of output is essentially determined by shifts in the AS-curve
B) the level of output is essentially determined by shifts in the AD-curve
C) the price level will not change since the AS-curve is horizontal
D) real money balances continuously decrease as the AD-curve remains constant
E) the price level is determined solely by the shift in the AS-curve