Which of the Following Is Necessarily True When an Economy

question 170

Multiple Choice

Which of the following is necessarily true when an economy is in long-run equilibrium?

• A) Prices will be constant (that is, inflation will be zero).
• B) The actual output will be less than the full-employment (or potential) output.
• C) The actual rate of unemployment equals the natural rate of unemployment.
• D) The output of the economy will be greater than the full-employment output.

---

Definitions:

European Weapons

Firearms, swords, and other armaments produced in Europe, historically significant in military conflicts and the colonization process.

Militarized States

Countries or regions in which military power is significantly emphasized and military institutions play a central role in governance and societal organization.

West African Leaders

Political or cultural figures who have significant influence or authority in West Africa, impacting its history, politics, or socio-economic development.

Treaty of Utrecht

A series of agreements signed in 1713 that helped end the War of Spanish Succession, redistributing territories among various European powers.