Fill in the blanks to make the following statements correct.

a. In our short-run macro model, it is assumed that factor prices are ________ and the level of potential output is ________ Changes in real GDP are caused by fluctuations in _______ and ________

b. During the adjustment process highlighted in this chapter, the central assumption is that factor prices are __________ \(\_\)and respond to _________ \(\ldots\). Potential output is assumed to be _________ \(\longrightarrow\), and acts as a(n) _________ for real GDP following \(A D\) or \(A S\) shocks.