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In Long-Run Macroeconomic Equilibrium

Question 73

Multiple Choice

In long-run macroeconomic equilibrium


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

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