In the long run in the AD/AS macro model we can say that
A) both real GDP and the price level are determined by aggregate demand.
B) both real GDP and the price level are determined by Y*.
C) long-run real GDP is determined by Y* and the long-run price level by the AD curve.
D) real GDP is determined by aggregate demand and the price level by Y*.
E) long-run real GDP is determined by aggregate demand and the price level is determined solely by the AS curve.
Correct Answer:
Verified
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