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Question:

Based on the aggregate demand/aggregate supply model:

A actual real GDP is equal to potential real GDP in the long run.
explanation

In the short run, real GDP can be less than its full-employment level (a recessionary gap that causes downward pressure on prices) or more than its full-employment level (an inflationary gap that causes upward pressure on prices). In long-run macroeconomic equilibrium, actual real GDP is equal to potential real GDP and there is no upward or downward pressure on the price level.

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