Which of These Does Not Hold True If an Economy

question 110

Multiple Choice

Which of these does not hold true if an economy is simultaneously in long-run and short-run equilibrium?

• A) The actual price level equals the expected price level.
• B) Aggregate quantity supplied equals potential output.
• C) Aggregate quantity demanded equals potential output.
• D) Aggregate quantity supplied equals aggregate quantity demanded.
• E) The aggregate demand curve is horizontal at the potential output level.

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