Which of the Following Will Always Be True When an Economy

question 127

Multiple Choice

Which of the following will always be true when an economy is in long-run equilibrium?

• A) The level of prices will be constant (that is, inflation will be zero).
• B) Actual output will exceed the potential output.
• C) The actual rate of unemployment will be less than the natural rate of unemployment.
• D) The output of the economy will correspond with the full-employment output.

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Definitions:

Confirmation Bias

The inclination to seek out, understand, prefer, and remember data in a manner that validates one's existing beliefs or theories.

Bilingualism

The capacity to communicate smoothly in two languages.

Second Language Learning

The process through which a person learns a language other than their native language, often through formal education or immersion.

Additive Strategy

A problem-solving approach that involves combining different strategies or elements in order to achieve a solution.