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Which of the Following Is True in the Long Run

Question 72

Multiple Choice

Which of the following is true in the long run?


A) The aggregate demand curve determines the level of potential output.
B) The long-run aggregate supply curve is horizontal.
C) The actual price level and the expected price level are equal.
D) Cyclical unemployment is between 5 percent and 6 percent.
E) The price level is determined entirely by the long-run aggregate supply curve.

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