Long-run macroeconomic equilibrium occurs when
A) the aggregate demand curve intersects the short-run aggregate supply curve.
B) the aggregate demand and short-run aggregate supply curves intersect at a point on the long-run aggregate supply curve.
C) structural and frictional unemployment equal zero.
D) output is above potential GDP.
Answer: B
You might also like to view...
Resources that are privately owned are less likely to be depleted than resources that are not privately owned
Indicate whether the statement is true or false
If the average price level increases 10 percent per year, and the velocity of money is 2, then the:
A. inflation rate is 10 percent. B. inflation rate is 5 percent. C. inflation rate is 2 percent. D. inflation rate is 20 percent.
Suppose a senior college football player approaches an insurance company and seeks to purchase an insurance policy against him receiving a career-ending injury. The insurance company
A) will sell him an insurance policy because the proposal entails uncertainty not risk. B) will sell him an insurance policy because the proposal entails risk not uncertainty. C) will not sell him an insurance policy because the proposal entails uncertainty not risk. D) will not sell him an insurance policy because the proposal entails risk not uncertainty.
Define GDP and its characteristics
What will be an ideal response?