Chapter 32, Problem 6MCQ

To determine

The correct option regarding the nature of real GDP in the long run.

Explanation of Solution

Aggregate supply is, to put it simply, equal to potential output at all prices. The labor force, physical capital, and technology available all influence potential production, which is unaffected by the price level. Real GDP eventually equals potential GDP, and real GDP also equals total spending.

Thus, from the above we can conclude that the correct option is B.