In the short run, ________ determines output, and in the long run ________ determines output.
A)potential output; prices
B)potential output; total spending
C)total spending; potential output
D)total spending; prices

Question

Quizplus · Accepted Answer

In the short run, aggregate demand determines output. In the long run, however, the economy's ability to produce, or its potential output, determines output.

In the Short Run, ________ Determines Output, and in the Long