Which of the Following Is True About the Economy in the Long

question 66

Multiple Choice

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

• A) Equilibrium output is always below potential GDP.
• B) The aggregate supply curve is horizontal.
• C) Structural unemployment and frictional unemployment are nonexistent.
• D) Business profits do not increase.
• E) Production costs are close to zero.

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Definitions:

NATO Forces

Military forces from member countries of the North Atlantic Treaty Organization, an intergovernmental military alliance between North American and European countries established in 1949 for mutual defense.

Aerial Bombardment

Military strategy involving dropping bombs from aircraft onto ground targets, often used in warfare to damage infrastructure and enemy forces.

Kyoto Protocol

An international treaty that commits state parties to reduce greenhouse gas emissions, based on the scientific consensus that global warming is occurring and that human-made CO2 emissions are a significant cause.

Carbon Dioxide Emissions

The release of CO2 into the atmosphere, primarily from burning fossil fuels (coal, oil, and gas) for energy and transportation, contributing to global warming and climate change.