In the AD/AS Framework, When the Economy Is in Long-Run

question 21

Multiple Choice

In the AD/AS framework, when the economy is in long-run equilibrium,

• A) inflation is occurring.
• B) the entire labor force is employed.
• C) actual prices are equal to expected prices.
• D) actual levels of income and employment are less than the natural levels of income and Employment.

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Definitions:

Poverty Rate

The percentage of the population living below the national poverty line, indicating the extent of poverty in a country.

Absolute Number

An absolute number is a value expressed without any reference to other data, representing a quantity on its own.

Poverty Trends

The patterns or changes in levels and rates of poverty over a period of time across different regions or population groups.

Poverty Rate

The percentage of a population that lives below the poverty line, which is the minimum level of income deemed necessary to achieve an adequate standard of living.