Long-Run Macroeconomic Equilibrium Occurs When

question 57

Multiple Choice

Long-run macroeconomic equilibrium occurs when

• A) real GDP is at a point along the short-run aggregate supply curve.
• B) the unemployment rate is zero.
• C) real GDP is equal to potential GDP.
• D) all able-bodied adults have jobs.

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Definitions:

Physical Laws

Fundamental principles that describe and predict the conditions under which physical events occur, usually expressed in mathematical form.

High-Quality Energy

Energy that is concentrated and easily transformed into other forms of energy, such as electricity and gasoline, with a high efficiency rate.

Scientific Hypotheses

Proposed explanations for a phenomenon, based on observation, which can be tested through experimentation or observation.

Deductive Reasoning

A logical process in which a conclusion follows necessarily from the set of premises provided, moving from general principles to specific instances.