Within the Framework of the AD/AS Model, If a Long-Run

question 20

Multiple Choice

Within the framework of the AD/AS model, if a long-run equilibrium is present in the goods and services market,

• A) decision makers will have accurately forecast the current price level when they arrived at resource price and loanable funds agreements.
• B) the profit rates of the firms will generally exceed the competitive level.
• C) the actual rate of unemployment will be less than the natural rate of unemployment.
• D) output will exceed the economy's long-run sustainable output.