Multiple Choice
Long-run full-employment equilibrium assumes:
A) a downward-sloping production function.
B) a downward-sloping long-run supply curve (LRAS) .
C) the CPI index price level equals the equilibrium wage rate.
D) aggregate demand (AD) equals short-run aggregate supply (SRAS) equals long-run aggregate supply (LRAS) .
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Along the classical or vertical range of
Q11: In the self-correcting AD-AS model, the economy's
Q12: The aggregate demand curve is downward sloping
Q22: Suppose an increase in government spending stimulates
Q23: Beginning from full-employment macro equilibrium, increase
Q54: Exhibit 14A-6 Aggregate demand and supply model<br><img
Q62: The aggregate supply curve will shift to
Q62: Exhibit 14A-1 Aggregate demand and supply model<br><img
Q68: Other factors held constant, a decrease in
Q76: The aggregate demand curve shows how real