Use the Following to Answer Questions

question 95

Multiple Choice

Use the following to answer questions .
Exhibit: Long-run Equilibrium
-(Exhibit: Long-run Equilibrium) Based on the figure, we can conclude that

• A) in the short run, the economy will always achieve full-employment equilibrium.
• B) in the long run, given flexible wages and prices, the economy will achieve equilibrium at its potential output level.
• C) flexible wages and prices are irrelevant since the LRAS curve is vertical.
• D) in the long run, the aggregate demand curve determines the potential output level.

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Definitions:

Intrinsic Factors

Internal elements or causes within an individual or system that affect its operation or outcome, often contrasted with external or extrinsic factors.

Brain Structure

The physical configuration and organization of the brain, including its various parts and networks that dictate its functions.

Synapses

The junctions between nerve cells where electrical or chemical signals are transmitted across neurons, crucial for brain function.

Experience-expectant Development

A concept in developmental psychology that suggests the brain develops in certain ways based on common experiences encountered by most humans during the normal course of development.