Long-Run Equilibrium Will Occur at the Price Level at Which

question 103

Multiple Choice

Long-run equilibrium will occur at the price level at which

• A) the long-run aggregate demand and short-run aggregate supply curves intersect.
• B) the aggregate demand and short-run aggregate supply curves intersect.
• C) the aggregate demand and long-run aggregate supply curves intersect.
• D) the short-run aggregate supply and long-run aggregate supply curves intersect.

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Definitions:

Required Rate

The minimum return that investors expect or the company estimates it needs to generate from a capital investment or project to consider it viable.

Maximum Price

The highest price that a trader, investor, or consumer is willing to pay for a security or good.

Required Rate

The minimum expected rate of return on an investment, set by investors based on risk levels and economic conditions.

Expected Growth Rate

The projected rate at which a company's earnings or revenue are anticipated to grow.