Which of the Following Statements Is True About the Economy

question 57

Multiple Choice

Which of the following statements is true about the economy in the long run?

• A) Equilibrium output is below potential GDP and the rate of unemployment exceeds the natural rate.
• B) Production costs are close to zero in the long run.
• C) The rate of unemployment is zero in the long run.
• D) The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
• E) The aggregate supply curve is a horizontal line.

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Definitions:

Neutral Solution

A solution of pH 7; there are equal concentrations of hydrogen ions [H+] and hydroxide ions [OH-]. Compare with acidic solution and basic solution.

Valence Electrons

The outermost electrons of an atom, which determine its chemical bonding properties.

Chemical Properties

Chemical properties are characteristics of a substance that determine how it interacts with other substances during chemical reactions, defining its composition and behavior.

Buffer

A solution that resists changes in pH when acid or alkali is added to it.