If the Economy Is Simultaneously in Long-Run and Short-Run Equilibrium

question 100

Multiple Choice

If the economy is simultaneously in long-run and short-run equilibrium, which of the following is true?

• A) Aggregate quantity supplied is greater than potential output.
• B) Aggregate quantity demanded is less than potential output.
• C) Aggregate quantity demanded is equal to potential output.
• D) The aggregate demand curve is horizontal at the potential output level.

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Definitions:

General Merchandise Store

Retail establishments offering a wide range of products from various categories including clothing, housewares, and groceries.

Value Outlet

A retail store that offers products at lower prices by reducing overhead costs and offering goods that provide value for money.

Focused Merchandise Stores

Retail outlets that specialize in a specific type of product or market niche, aimed at catering to specific customer needs.

Specialty Discount Retailer

Retailers that focus on selling a specific category of products at reduced prices, often offering large selections in their niche.