If Short-Run Equilibrium Output Is Above Full-Employment Output,then in the Long

question 78

Multiple Choice

If short-run equilibrium output is above full-employment output,then in the long run input prices will

• A) decrease and output will increase.
• B) increase and output will be unaffected.
• C) increase and short-run aggregate supply will increase.
• D) increase and output will fall.
• E) decrease and output will fall.

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Definitions:

Financial Statements

Reports that provide an overview of a company’s financial condition, including balance sheet, income statement, and cash flow statement.

Bank Loan Payable

This term represents the amount owed by an individual or an entity to a bank as a result of borrowing funds, typically subject to specified repayment terms and interest.

Interest Accrued

Interest that has been incurred but not yet paid, often recognized in financial statements through adjusting entries.

Salaries Expense

The total amount paid to employees for services rendered during a specific period, reflected as an expense in financial statements.