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In Long-Run Macroeconomic Equilibrium

Question 216

Multiple Choice

In long-run macroeconomic equilibrium,


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

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