The Macroeconomy Is Said to Be in Long-Run Equilibrium Only

question 141

Multiple Choice

The macroeconomy is said to be in long-run equilibrium only if

• A) the resource, loanable funds, foreign exchange, and goods and services markets are all in equilibrium.
• B) prices were incorrectly estimated by decision makers.
• C) the output of the economy exceeds the full-employment level of output.
• D) the economy is operating along its short-run aggregate supply curve.

---

Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to the interconnectedness of the world's economies, cultures, and populations.

International Aid

Financial or material assistance provided by one country or international organization to another country to support development, alleviate poverty, or respond to crises.

Negative Aspects

The disadvantages or harmful effects associated with a situation, decision, or action.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, driven by international trade and investment and aided by information technology.