Solved

In the Long Run, Under What Circumstances Would the Economy

Question 135

Multiple Choice

In the long run, under what circumstances would the economy produce at potential output?  


A)  if workers mistakenly believe that nominal wages equal real wages 
B)  if expectations are the same in the long run and in the short run 
C)  if wages and prices are sufficiently flexible 
D)  if the price level is high

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions