If the Economy Is Simultaneously in Long-Run and Short-Run Equilibrium

question 100

Multiple Choice

If the economy is simultaneously in long-run and short-run equilibrium, which of the following is true?

• A) Aggregate quantity supplied is greater than potential output.
• B) Aggregate quantity demanded is less than potential output.
• C) Aggregate quantity demanded is equal to potential output.
• D) The aggregate demand curve is horizontal at the potential output level.

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Definitions:

Happy People

Individuals who consistently exhibit feelings of happiness, contentment, and well-being in their daily lives.

Well Educated

Being well-educated implies having received a comprehensive and broad education, not only in terms of formal schooling but also in the acquisition of knowledge and critical thinking skills through diverse experiences.

Locked-In

A medical condition where an individual is fully conscious but cannot move or communicate verbally due to complete paralysis of nearly all voluntary muscles.

Motionless Body

Describes a state of not moving or being completely still.