Multiple Choice
Which of the following statements is true?
A) The long-run aggregate supply (LRAS) curve shows the Real GDP the economy is prepared to supply at different price levels,assuming wage rates and all other resource prices have fully adjusted to eliminate a recessionary or inflationary gap.
B) Laissez-faire is a government policy of raising aggregate demand in order to eliminate a recessionary gap.
C) An economy can operate beyond its physical PPF,but not beyond its institutional PPF.
D) If the economy is self-regulating,it is always in long-run equilibrium.
E) a and c
Correct Answer:
Verified
Correct Answer:
Verified
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