The position of the long-run aggregate supply curve corresponds to the economy's:
a. full-employment real GDP
b. maximum possible level of employment.
c. natural level of personal consumption expenditure.
d. maximum possible level of personal consumption expenditures.
e. maximum possible price level.
a
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In the neoclassical growth model, if two countries are exactly the same but one has a lower depreciation rate, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and the same per capita output growth in the steady state. b. higher output, a higher capital-to-labor ratio, and higher per capita output growth in the steady state. c. the same output and capital-to-labor ratio, but higher per capita output growth in the steady state. d. higher output, the same capital-to-labor ratio, and the same per capita output growth in the steady state.
Over time, quotas usually lead to larger deadweight losses than tariffs
Indicate whether the statement is true or false