Looking at the Globalized AS/AD Model, the Economy Can Exceed

Looking at the globalized AS/AD model, the economy can exceed potential output, without generating accelerating goods inflation, because:

A) the world price level puts a cap on the domestic price level.
B) the domestic price level always exceeds the world price level.
C) the world price level always exceeds the domestic price level.
D) the LRAS curve is no longer vertical.

Correct Answer:

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