Multiple Choice
The long-run economic growth model assumes that
A) the economy always moves toward equilibrium at full employment.
B) it takes a long time to arrive at the long run.
C) macroeconomic equilibrium at full employment is only a theory and has little to do with reality.
D) the economy is at full employment at all times.
Correct Answer:

Verified
Correct Answer:
Verified
Q36: Knowing the marginal propensity to consume makes
Q37: Suppose the economy is at full employment,
Q38: Hypothetically speaking, if the Organization of the
Q39: A change in _ will cause a
Q40: An increase in subsidies will lead to
Q42: Assume initially the economy is at full
Q43: If the marginal propensity to save is
Q44: Decreased interest rates will shift the aggregate
Q45: Cost-push inflation occurs because of a shift
Q46: In the short run, the aggregate supply