When an Economy Operates at Its Long-Run Potential Output Level

question 166

Multiple Choice

When an economy operates at its long-run potential output level,

• A) aggregate demand will exceed aggregate supply in the goods and services market.
• B) unemployment will decline to an abnormally low rate that cannot be sustained in the long run.
• C) the actual rate of unemployment will exceed the natural rate of unemployment.
• D) the natural and actual rates of unemployment will be equal.

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