In the Macroeconomic Long Run

question 358

Multiple Choice

In the macroeconomic long run,

• A) GDP always is below potential GDP.
• B) there is full employment with no unemployment.
• C) output always is above potential GDP.
• D) there is full employment and real GDP is equal to potential GDP.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true profitability of a business.

TR

Total revenue, representing the total sales income a firm receives from selling its goods or services.

TC

An abbreviation commonly used for Total Cost, which encompasses all costs incurred in the production of goods or services.

Scale Of Operation

Refers to the size at which a particular business or factory operates, considering factors like output, capacity, or the amount of work it can perform.