An Important Assumption in the AD/AS Macro Model Is That

Multiple Choice

An important assumption in the AD/AS macro model is that when real GDP exceeds potential output,factor prices rise and the

A) AS curve shifts to the left.
B) AD curve shifts to the right.
C) AS curve shifts to the right very rapidly.
D) AD curve shifts to the left rapidly.
E) None of the above - the AS curve remains unchanged.