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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Definitions:

Argon

A noble gas element that is colorless, odorless, tasteless, and non-toxic, used in lighting and welding.

Chromium

A chemical element with symbol Cr and atomic number 24, known for its high corrosion resistance and hardness.

Fluorine

A highly reactive, pale yellow gas at room temperature, being the most electronegative and reactive of all the elements.

Francium

A highly radioactive metal with the atomic symbol Fr, the least stable and most rare naturally occurring element in the periodic table.