If the Economy Is Simultaneously in Long-Run and Short-Run Equilibrium,which

question 43

Multiple Choice

If the economy is simultaneously in long-run and short-run equilibrium,which of the following is not true?

• A)The actual price level equals the expected price level.
• B)Aggregate quantity supplied equals potential output.
• C)Aggregate quantity demanded equals potential output.
• D)Aggregate quantity supplied equals aggregate quantity demanded.
• E)The aggregate demand curve is horizontal at the potential output level.

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Definitions:

Discontinued Operations

The disposal of a significant component of a business.

Generally Accepted Accounting Principles

A set of accounting standards and procedures used in the United States to govern financial reporting and ensure consistency across organizations.

Quality Of Earnings

An assessment of the degree to which a company's earnings are considered reliable or sustainable, and free from artificial inflation or deflation.

Profitability Ratios

Measures of the income or operating success of a company for a given period of time.