"The Level of Potential Output,Y*,acts Like an Anchor for the Level

Multiple Choice

"The level of potential output,Y*,acts like an anchor for the level of real GDP." Which of the following best explains this statement?

A) Following an AD or AS shock that pushes real GDP away from Y*,the adjustment of factor prices brings real GDP back to Y*.
B) The level of potential output,Y*,is equal to whatever the level of actual GDP,no matter what shocks hit the economy.
C) Real GDP is "anchored" to potential output,Y*,because real GDP is,by definition,always equal to Y*.
D) Following an AD or AS shock that pushes real GDP away from Y*,changing technology brings Y* back to real GDP.
E) The concept of potential output,Y*,as an anchor for real GDP refers to the fiscal policy tools used to bring real GDP back to Y*.