When an Economy Is in Long Run Equilibrium

question 171

Multiple Choice

When an economy is in long run equilibrium,

• A) it will be impossible to sustain the current rate of output in the future.
• B) the interest rate will decline.
• C) the foreign exchange value of the dollar will tend to appreciate.
• D) the actual and natural rates of unemployment will be equal.

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Definitions:

Record Date

The specified date on which a company determines its shareholders' eligibility to receive dividends or the right to participate in corporate actions.

First-quarter Dividend

This is a dividend payment made by a corporation to its shareholders, typically after the first quarter's earnings are calculated.

Dividend Increase

A rise in the amount of dividends paid out per share by a company to its shareholders.

Stock Price

The cost of purchasing a share of a company, reflecting the company's value as determined by the market.