In the Long-Run Equilibrium

question 12

Multiple Choice

In the long-run equilibrium

• A)output is a function of autonomous expenditures.
• B)inflation is a function of past inflation.
• C)inflation equals potential output.
• D)output equals potential output.

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Definitions:

River Terraces

Stepped, flat surfaces alongside river valleys that represent previous levels of the river bed, formed by river erosion and changes in water level.

Nile River

The longest river in Africa, flowing north through northeastern Africa to drain into the Mediterranean Sea.

Mediterranean Sea

An almost entirely land-enclosed sea that connects to the Atlantic Ocean, bordered by the Mediterranean region.

Delta

A delta is a landform at the mouth of a river where it spreads out into several branches before entering a larger body of water, typically formed from sediment deposition.