A Characteristic of Long-Run Equilibrium Is the Economy Is Producing

Multiple Choice

A characteristic of long-run equilibrium is the economy is producing its potential output. This is:

A) the maximum level of output the economy could produce at any time.
B) the level of output the economy produces when its resources are used at normal rates.
C) defined as using 80 percent of the economy's resources at any time.
D) the level of output consistent with an unemployment rate of 7.5%.