The level of real GDP in the long run is
A) called potential GDP.
B) affected by changes in the price level.
C) determined solely by aggregate demand.
D) the same as the level of nominal GDP in the long run.
Answer: A
Economics
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All the following actions represent fiscal policy EXCEPT
A) an increase in government spending. B) a reduction in individual income tax rates. C) a reduction in the money supply by the Federal Reserve. D) an increase in corporate income tax rates.
Economics
According to the budget line in the above figure, which of the following combinations is unaffordable?
A) 1 pizza and 3 CDs B) 3 pizzas and 2 CDs C) 2 pizzas and 4 CDs D) All of the above are affordable.
Economics