In the long run
A) GDP = potential GDP.
B) unemployment is below its natural rate.
C) LRAS and SRAS lie on the same line.
D) unemployment is above its natural rate.
Answer: A
You might also like to view...
The total physical product of an input is the same thing as its
a. total revenue product. b. marginal physical product times output. c. output. d. total consumer's surplus.
An open market sale of U.S. Treasury securities by the Fed will cause the Banking System's balance sheet to show:
A. no net change in assets or liabilities, only a change in the composition of assets with securities increasing and reserves decreasing. B. only an increase in liabilities. C. no net change in assets or liabilities, only a change in the composition of assets with securities decreasing and reserves increasing. D. only a decrease in assets.