The Conditions for Long-Run Equilibrium Include Each of the Following

question 44

Multiple Choice

The conditions for long-run equilibrium include each of the following, except:

• A) imports equal exports.
• B) current inflation is steady and equals target inflation.
• C) current output equals potential output.
• D) current inflation equals expected inflation.

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Definitions:

Book Values

The value of an asset as it appears on a balance sheet, calculated as cost minus accumulated depreciation.

Market Value

The present cost at which a service or asset is available for purchase or sale.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total value of assets.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.