When an Economy Is Operating on Its Long-Run Aggregate Supply

question 85

Multiple Choice

When an economy is operating on its long-run aggregate supply curve,

• A)the actual inflation rate is greater than the anticipated inflation rate.
• B)the actual unemployment rate equals the natural unemployment rate.
• C)unemployment will fall to an unusually low rate that is not likely to last into the future.
• D)real GDP demanded exceeds real GDP supplied.
• E)inflation must be positive.

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