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

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.