Solved

In Long- Run Macroeconomic Equilibrium

Question 327

Multiple Choice

In long- run macroeconomic equilibrium,


A) real GDP equals potential GDP.
B) real GDP and the price level are determined by short- run aggregate supply and aggregate demand and long- run aggregate supply is irrelevant.
C) the price level is fixed and aggregate demand determines real GDP.
D) real GDP is less than potential GDP.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q322: If the economy is in long run

Q323: Higher taxes<br>A) increase the aggregate quantity demanded.<br>B)

Q324: In the short- run, a rise in

Q325: Suppose there is a temporary increase in

Q326: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5270/.jpg" alt=" -In the above

Q328: The intertemporal substitution effect refers to substitution

Q329: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5270/.jpg" alt=" -In the above

Q330: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5270/.jpg" alt=" -In the above

Q331: China is one of the world's largest

Q332: Consider a BMW automobile plant. If the