CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

In long-run equilibrium, ______

A. aggregate demand is vertical.
B. real GDP equals potential GDP.
C. price level is fixed.
Correct Answer: B

User Contributed Comments 6

User Comment
MaiHuong what's about price level?
Nightsurfer Price level doesn't affect anything in the long run.
MattyBo Long Run Macro Equilibrium: Real GDP = Potential GDP.

Short run are changes around that relationship.
rfvo Not price level, but GDP (product) y (axis)remains constant
jejasin Aggregate SUPPLY is vertical, yes?
Kevdharr Yes, aggregate SUPPLY, not demand, is vertical in long-run equilibrium.
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