Multiple Choice
Which of the following is necessarily true when an economy is in long-run equilibrium?
A) Prices will be constant (that is, inflation will be zero) .
B) The actual output will be less than the full-employment (or potential) output.
C) The actual rate of unemployment equals the natural rate of unemployment.
D) The output of the economy will be greater than the full-employment output.
Correct Answer:
Verified
Correct Answer:
Verified
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