Long-run full-employment equilibrium assumes:
a. a downward-sloping production function.
b. a downward-sloping long-run supply curve (LRAS)
c. the CPI index price level equals the equilibrium wage rate.
d. the CPI equals aggregate demand (AD) equals short-run aggregate supply (SRAS) equals long-run aggregate supply (LRAS).
d
Economics
You might also like to view...
The income effect occurs when an individual switches to another similar good when the price of the preferred good increases
a. True b. False Indicate whether the statement is true or false
Economics
In the context of technology transfer, light green technologies refer to
a. innovations that directly impact the environment b. technologies that indirectly affect the environment c. toxic chemical use substitution d. none of the above
Economics