In the macroeconomic long run,
A) real GDP equals potential GDP.
B) regardless of the price level, the economy is producing at potential GDP.
C) the economy is at full employment.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

In the long run, real GDP reaches potential GDP and the economy operates at full employment. This means that regardless of the price level, the economy is producing at its maximum sustainable level. Therefore, all three statements are correct.

In the Macroeconomic Long Run