Which of the Following Is True of an Economy in the Long

question 7

Multiple Choice

Which of the following is true of an economy in the long run?

• A) The economy operates on its production possibility frontier.
• B) The rate of inflation is expected to be very high.
• C) Wage rates increase faster than inflation rates.
• D) There is a high level of unemployment in the economy.

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often related to imminent events or something with an unpredictable result.

Hysteria

A psychological disorder characterized by excessive or uncontrollable emotion or excitement, now recognized as a variety of disorders.

Opposite Extremes

Situations, concepts, or phenomena that are completely contrary to each other, exhibiting no common ground.

Organic Disorder

A term for physical or physiological disorders caused by structural changes in the body.