In Long-Run Macroeconomic Equilibrium, Actual Aggregate Output Equals Potential Output

question 227

True/False

In long-run macroeconomic equilibrium, actual aggregate output equals potential output.

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Definitions:

Constant of Proportionality

A constant ratio or factor that relates two variables in a proportional relationship, often represented by k in the formula y = kx.

Square Root

A value that, when multiplied by itself, gives the original number.

Directly Proportional

The relationship between two variables where if one variable increases, the other variable increases by the same factor.

Total Revenue

The total income generated from the sale of goods or services, calculated as the unit price multiplied by the quantity sold.