In Long- Run Macroeconomic Equilibrium

question 42

Multiple Choice

In long- run macroeconomic equilibrium,

• A) the aggregate demand curve adjusts to the point where the long- run aggregate supply curve and the short- run aggregate supply curve intersect.
• B) the real wage rate has adjusted so that the economy is on the short- run aggregate supply curve but not on the long- run aggregate supply curve.
• C) long- run aggregate supply curve has shifted so that potential GDP equals real GDP.
• D) None of the above answers is correct.

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Definitions:

Cost Center

A department or segment within a company where costs can be allocated, but that does not directly contribute to profit, primarily used for budgeting and control purposes.

Investment Center

A business unit or division that is responsible for its own revenues, expenses, assets, and returns, and is evaluated on its profitability and efficiency in using its assets.

Profit Center

A department or unit within an organization that is responsible for generating revenue and is evaluated based on its profitability.

Service Department

A segment within a business that supports other departments by providing internal services or activities.