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When an Economy Is Operating on Its Long-Run Aggregate Supply

Question 85

Multiple Choice

When an economy is operating on its long-run aggregate supply curve,


A) the actual inflation rate is greater than the anticipated inflation rate.
B) the actual unemployment rate equals the natural unemployment rate.
C) unemployment will fall to an unusually low rate that is not likely to last into the future.
D) real GDP demanded exceeds real GDP supplied.
E) inflation must be positive.

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