Superstars earn high incomes due to their ability to satisfy the demands of millions of people at once

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.

To abstract from reality in an economic model means that:

A. we include only a few of the essential aspects of reality. B. the economic study surveys only a very limited period of time. C. we include only those elements which support our hypothesis. D. the model includes every aspect of the real world.