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Aggregate demand (AD) is comprised of expenditure components that include:
a. consumption, investment, exports, and taxes
b. consumption, government spending, exports, and labor
c. government spending, taxes, exports, and labor
d. government spending, consumption, investment, and net exports
The long-run aggregate supply curve is vertical because in the long run,
a.changes in the price
level affect potential GDP via other variables, such as the size of the labor force, capital stock, and technology.
b. changes in the price level do not affect potential GDP, as potential GDP depends on the size of the labor force, capital stock, and technology.
c. the price level does not change, but potential GDP changes its value.
d. changes in the size of the labor force, capital stock, and technology affect the price level but not the potential GDP.