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Which of the Following Is a Defining Assumption of the AD/AS

Question 16

Multiple Choice

Which of the following is a defining assumption of the AD/AS macro model in the long run?


A) factor supplies are assumed to be fixed
B) technology used in production is constant
C) the level of potential output is constant
D) factor prices are assumed to be fixed
E) changes in real GDP are determined by the changes in potential output

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