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:

Taxpayers

Individuals or entities that are required to pay taxes to a government body, typically based on income, property value, or consumption.

Commercial Banks

Financial institutions that offer a wide range of services such as accepting deposits, providing loans, and other banking services to the public.

Welfare Banks

Financial institutions or programs that aim to support the economically disadvantaged segments of society, though it's not a widely used term and may refer to various initiatives in different contexts.

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Financial service providers that offer clients the ability to cash checks for a fee without needing a bank account.