Multiple Choice
If the economy is in short-run equilibrium but not in long-run equilibrium, what forces cause the economy to return to long-run equilibrium?
A) Input prices change, causing the short-run aggregate supply curve to shift.
B) The long-run aggregate supply curve shifts until long-run equilibrium is restored.
C) The aggregate demand curve shifts, causing price changes that restore long-run equilibrium.
D) None of the above is correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q60: Starting from long-run equilibrium, an increase in
Q61: If the actual price level for goods
Q62: If government policymakers are shortsighted and use
Q63: Which of these are excluded from the
Q64: The short-run aggregate supply curve is upward
Q66: In the long run, if aggregate demand
Q67: Which of the following is most likely
Q68: The substitution effect means consumers substitute good
Q69: When all prices (including wages) have fully
Q70: _explains why price level decreases for a