Long-run equilibrium in the goods and services market requires that
a. aggregate supply equals aggregate demand and that decision makers correctly anticipate the level of prices.
b. the unemployment rate is zero.
c. prices are neither increasing nor decreasing.
d. aggregate supply be larger than aggregate demand.
A
Economics
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Refer to the information above. What is the equilibrium level of GDP?
A) 300 B) 400 C) 450 D) 525
Economics
Suppose the economy's short-run equilibrium is at a point to the right of Natural Real GDP. Which of the following statements is true?
A) The economy is in an inflationary gap. B) The economy is in a recessionary gap. C) The economy is in long-run equilibrium. D) This situation is actually impossible.
Economics