In Order for the Economy to Be in Long-Run Equilibrium

question 32

Multiple Choice

In order for the economy to be in long-run equilibrium,

• A)price expectations must be accurate.
• B)the economy is on an SP curve.
• C)y = p.
• D)All of the above.

---

Definitions:

Just-World Phenomenon

The belief that the world is fundamentally fair, leading people to rationalize injustice or misfortune as deserved by the victims.

Social Trap

Situations in which individuals or groups make decisions that seem beneficial in the short term but lead to negative outcomes in the long term for themselves and/or others.

Superordinate Goals

Shared goals that necessitate cooperative effort and can reduce conflict between groups by aligning their interests.

Reciprocity Norm

A social norm that expects individuals to help those who have helped them, fostering cooperative and mutually beneficial interactions.