When an Economy Is in Long Run Equilibrium

question 171

Multiple Choice

When an economy is in long run equilibrium,

• A) it will be impossible to sustain the current rate of output in the future.
• B) the interest rate will decline.
• C) the foreign exchange value of the dollar will tend to appreciate.
• D) the actual and natural rates of unemployment will be equal.

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Definitions:

Monk's Quarters

Living spaces or cells designated for monks within a monastery, where they engage in prayer, meditation, and daily religious activities.

French Gothic

An architectural style that evolved in France in the 12th century, characterized by pointed arches, ribbed vaults, and flying buttresses.

Salisbury Cathedral

A historic Anglican cathedral in Salisbury, England, known for having the tallest church spire in the UK and its early English Gothic architecture.

Pointed Arches

An architectural element characteristic of Gothic style, featuring arches with pointed apexes, which allowed for higher structures and larger windows.