In long-run macroeconomic equilibrium, the
A) real wage rate has adjusted so that the economy is on the short-run aggregate supply curve but not on the long-run aggregate supply curve.
B) long-run aggregate supply curve has shifted in response to a money wage rate increase so that potential GDP equals real GDP.
C) aggregate demand curve adjusts to the point where the long-run aggregate supply curve and the short-run aggregate supply curve intersect.
D) None of the above answers is correct.
D
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A decrease in interest rates:
A. Raises the present value of a future amount B. Lowers the present value of a future amount C. Raises the future value of a present amount D. Has no effect on present or future amount
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $10 B. $2 C. $8 D. $12