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Which of These Does Not Hold True If an Economy

Question 62

Multiple Choice

Which of these does not hold true if an economy is simultaneously in long-run and short-run equilibrium?


A) The actual price level equals the expected price level.
B) Aggregate quantity supplied equals potential output.
C) Aggregate quantity demanded equals potential output.
D) Aggregate quantity supplied equals aggregate quantity demanded.
E) Aggregate demand curve is horizontal at the potential output level.

Correct Answer:

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