Long-Run Full-Employment Equilibrium Assumes

question 22

Multiple Choice

Long-run full-employment equilibrium assumes:

• A) ​a downward-sloping production function.
• B) ​a downward-sloping long-run supply curve (LRAS).
• C) ​the CPI index price level equals the equilibrium wage rate.
• D) ​the CPI equals aggregate demand (AD) equals short-run aggregate supply (SRAS) equals long-run aggregate supply (LRAS).
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Definitions:

Motive

A reason for doing something, especially one that is hidden or not obvious.

Boston Marathon

An annual marathon hosted by the city of Boston, Massachusetts, known as the world's oldest annual marathon.

Cheating

The act of being dishonest or unfair in order to gain an advantage, especially in a learning environment or in competitive situations.

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Strategies used in negotiations where parties view the available outcomes as fixed, leading to a win-lose situation where one's gain is the other's loss.