Long-run macroeconomic equilibrium occurs when
A) aggregate demand equals short-run aggregate supply and they intersect at a point on the long-run aggregate supply curve.
B) structural and frictional unemployment equals zero.
C) aggregate demand equals short-run aggregate supply.
D) output is above potential GDP.
A
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A profit-maximizing monopolist will produce the level of output at which
a. average revenue is equal to average total cost. b. average revenue is equal to marginal cost. c. marginal revenue is equal to marginal cost. d. total revenue is equal to opportunity cost.
An industry with a concentration ratio of 80 would have at least ____ firms.
A. 2 B. 3 C. 4 D. 5
The theory of efficient markets:
A. allows for higher than average returns if the investor takes higher than average risk. B. assumes people have equal luck. C. rules out high returns due to chance. D. says insider information makes markets less efficient.
A single-plant firm trying to select the rate of output consistent with an overall plant size that yields the minimum efficient scale will choose a rate of output for which
A) the short-run marginal cost curve crosses the short-run average total cost curve at that rate of output. B) the long-run marginal cost curve crosses the long-run average fixed cost curve at that rate of output. C) long-run average total cost is lowest at that rate of output. D) total fixed cots are minimized at that rate of output.