Long-run equilibrium will occur at the price level at which
A) the aggregate demand and long-run aggregate supply curves intersect.
B) the short-run aggregate supply and long-run aggregate supply curves intersect.
C) the long-run aggregate demand and short-run aggregate supply curves intersect.
D) the aggregate demand and short-run aggregate supply curves intersect.
Answer: A) the aggregate demand and long-run aggregate supply curves intersect.
You might also like to view...
If you sold a short contract on financial futures you hope interest rates
A) rise. B) fall. C) are stable. D) fluctuate.
When real GDP declines in a particular year, nominal GDP: a. will decline at a faster rate than real GDP if there is inflation. b. will decline at a slower rate than real GDP if there is inflation. c. may increase or decrease if there is inflation
d. will increase if there is deflation.
In a market, the marginal buyer is the buyer
a. whose willingness to pay is higher than that of all other buyers and potential buyers. b. whose willingness to pay is lower than that of all other buyers and potential buyers. c. who is willing to buy exactly one unit of the good. d. who would be the first to leave the market if the price were any higher.
A candidate who understands that in a two-person race the person closer to the center of the voter distribution will win is likely to
A) first take polls to figure out what the voters are thinking and then afterward propose policies that are consistent with the polls. B) first put forth his or her views on a whole host of issues and then afterward take polls to see if the majority of voters agree with him. C) speak in specific terms about what needs to be done. D) a and c E) b and c