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:

Uncertainty

The lack of certainty or predictability in situations, which can impact decision-making and planning in businesses and personal affairs.

Inventories

Quantities of goods or materials that are held by a business as part of its current assets for the purpose of resale or production.

Supply Chain

A system connecting a business with its providers to manufacture and deliver a particular item to the end consumer.

Purchase Transactions

Financial exchanges or agreements where goods or services are bought and paid for.