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 the
A) aggregate demand curve is horizontal.
B) Y* depends on the price level.
C) AS curve is upward sloping.
D) aggregate demand curve is vertical.
E) Y* is independent of the price level.
Correct Answer:
Verified
Correct Answer:
Verified
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