When Actual Output Equals Potential Output and the Inflation Rate

question 35

Multiple Choice

When actual output equals potential output and the inflation rate is equal to the expected rate of inflation, the economy is said to be in ________ equilibrium.

• A)long-run
• B)recessionary
• C)expansionary
• D)short-run

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Definitions:

Taboos

Culturally forbidden practices or norms that are considered unacceptable or prohibited in society.

Crescive Norms

Unwritten, societal rules and conventions that emerge gradually and dictate appropriate behaviors in various situations.

Enacted Norms

Socially accepted rules or behaviors that are established through repeated actions and responses, rather than formal agreement.

Aesthetic Side

Pertains to the appreciation of beauty or good taste, often related to the visual appearance or artistic appeal of objects, environments, or experiences.