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

Question

Quizplus · Accepted Answer

In the macroeconomic long run, real GDP equals potential GDP, the economy is at full employment, and regardless of the price level, the economy is producing at potential GDP. These conditions reflect an economy operating at its full capacity, which is why all of the given statements are correct.

In the Macroeconomic Long Run