Multiple Choice
Consider the AD/AS model.Since output in the long run is determined by Y*,the only role of the AD curve is to determine the price level.This is true because
A) Y* is independent of the price level.
B) the aggregate demand curve is vertical.
C) the aggregate demand curve is horizontal.
D) Y* depends on the price level.
E) the AS curve is upward sloping.
Correct Answer:
Verified
Correct Answer:
Verified
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