Consider the AD/AS model. In the long run, after factor prices have fully adjusted to any output gaps, real GDP
A)is determined by aggregate demand and the price level by potential output.
B)and the price level are determined by "long- run aggregate supply".
C)is determined by AD and the price level is determined by the AS curve.
D)and the price level are determined by aggregate demand.
E)is determined by potential output and the price level by aggregate demand.

Question

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The Answer of Consider the AD/AS model. In the long run, after factor prices have fully adjusted to any output gaps, real GDP
A)is determined by aggregate demand and the price level by potential output.
B)and the price level are determined by "long- run aggregate supply".
C)is determined by AD and the price level is determined by the AS curve.
D)and the price level are determined by aggregate demand.
E)is determined by potential output and the price level by aggregate demand.

Consider the AD/AS Model