The level of real GDP in the long run is
A)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.
E)the maximum possible GDP in any given period.

Question

Quizplus · Accepted Answer

Potential GDP is the level of real GDP that the economy would produce if all of its resources were fully employed. It is considered to be the long-run level of real GDP.

The Level of Real GDP in the Long Run Is