Long-Run Equilibrium in the Goods and Services Market Requires That

question 11

Multiple Choice

Long-run equilibrium in the goods and services market requires that

• A) aggregate supply equals aggregate demand and that decision makers correctly anticipate the level of prices.
• B) the unemployment rate is zero.
• C) prices are neither increasing nor decreasing.
• D) aggregate supply be larger than aggregate demand.

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Definitions:

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William James

An American philosopher and psychologist, often referred to as the father of American psychology, known for his work in pragmatism and functionalism.

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The knowledge or skill acquired by a person through direct involvement in or exposure to events or activities.