When AD Is Equal to SRAS at an Output Level

question 81

Multiple Choice

When AD is equal to SRAS at an output level equal to the LRAS curve,

• A)we are at long-run macroeconomic equilibrium.
• B)we are at the natural rate of unemployment.
• C)both a and b are true.
• D)neither a nor b is true.

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Definitions:

Wages

Payments made to workers for their labor, typically in the form of money and calculated on an hourly, daily, or piecework basis.

Unemployment Increase

A situation where the number of people who are actively looking for work but cannot find employment rises.

Minimum-Wage Laws

Minimum-wage laws set the lowest hourly wage that employers can legally pay their workers, aiming to protect employees from unduly low pay.

Highly-Educated Workers

Individuals in the workforce who have attained a high level of education, typically denoted by college degrees or other advanced certifications.