Multiple Choice
Which of the following is a defining characteristic of the AD/AS macro model in the long run?
A) the level of potential output is constant
B) technology used in production is constant
C) factor supplies are assumed to be fixed
D) factor prices are assumed to be fixed
E) changes in real GDP are determined by the changes in potential output
Correct Answer:

Verified
Correct Answer:
Verified
Q10: The Phillips curve describes the relationship between<br>A)inflation
Q11: Following any AD or AS shock, economists
Q12: Which of the following statements about output
Q13: A recessionary output gap implies that<br>A)there is
Q14: Consider the AD/AS model after factor prices
Q16: Suppose Canada's economy is in a long-
Q17: Consider an economy with a relatively steep
Q18: A recessionary output gap is characterized by<br>A)rising
Q19: Suppose the economy begins in a long-
Q20: In the basic AD/AS macro model, the