In the long run
A) GDP > potential GDP.
B) unemployment is at its natural rate.
C) LRAS and SRAS lie on the same line.
D) the inflation rate is zero.
Answer: B
Economics
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The greater is the marginal propensity to consume, the:
A. smaller is the marginal propensity to save. B. higher is the interest rate. C. smaller is the average propensity to consume. D. lower is the price level.
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