At a Short-Run Equilibrium ________, While at a Long-Run Equilibrium

question 36

Multiple Choice

At a short-run equilibrium ________, while at a long-run equilibrium ________.

• A)output is at a level consistent with inflation; there is an output gap
• B)output equals potential output; the inflation rate is stable
• C)the inflation rate is stable; there is an output gap
• D)there is an output gap; output equals potential output

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