-In the Above Figure, When the Economy Is in a Long-Run

question 83

Multiple Choice

-In the above figure, when the economy is in a long-run equilibrium, the price level will be

• A) 90.
• B) 120.
• C) 100.
• D) 110.

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Definitions:

Saving Account

A type of bank account where money is deposited to earn interest over time.

Decimal Places

The tally of numbers present right of the decimal point in a given number.

Annual Interest Rate

The percentage rate charged or paid over a period of one year for a loan or investment.

Compounds Interest Continuously

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, assumed to be compounded infinitely often per period.