In Long-Run Macroeconomic Equilibrium, the

question 157

Multiple Choice

In long-run macroeconomic equilibrium, the

• A) real wage rate has adjusted so that the economy is on the short-run aggregate supply curve but not on the long-run aggregate supply curve.
• B) long-run aggregate supply curve has shifted in response to a money wage rate increase so that potential GDP equals real GDP.
• C) aggregate demand curve adjusts to the point where the long-run aggregate supply curve and the short-run aggregate supply curve intersect.
• D) None of the above answers is correct.

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Definitions:

Anti-assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties under the contract to another party without consent.

Assignment

A task or piece of work allocated to someone as part of a job or course of study.

Lawsuit

A legal action initiated by one party against another for the enforcement or protection of a right, or the redress or prevention of a wrong.

Debris

Scattered fragments, typically of something wrecked or destroyed.