If the economy is in long-run equilibrium,
A) prices will rise but wages will remain constant.
B) neither prices nor wages will change.
C) it is producing Natural Real GDP.
D) prices will remain constant but wages may rise.
E) b and c
E
You might also like to view...
What is the loanable funds market?
What will be an ideal response?
According to the quantity theory of money, if the money supply grows at 25% and the inflation rate is 20%, the growth in real GDP is
A) 0.8%. B) 1.25%. C) 5%. D) 45%.
Which of the following statements best describes antebellum immigration to the U.S.?
a. Immigration peaked in the 1820s and slowly decreased through the Civil War. b. Immigration in the late 1840s and 1850s were primarily "pulled" to the US by the attractive opportunities available here. c. Immigration from England was relatively constant over time compared to the immigration rate from other nations. d. Large scale German immigration occurred primarily in the early part of this period.
If the equilibrium price of good X is $5 and a price ceiling is imposed at $4, the result will be a(n):
a. accumulation of inventories of unsold gas. b. shortage. c. surplus. d. all of these.