- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 10. Aggregate Output, Prices, and Economic Growth
- Subject 6. Equilibrium GDP and Prices
CFA Practice Question
In long-run equilibrium, ______
B. real GDP equals potential GDP.
C. price level is fixed.
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. |