If the Economy Is in Long-Run Equilibrium

question 98

Multiple Choice

If the economy is in long-run equilibrium:

• A)Inflation should be increasing at its long-term trend rate
• B)Current output should be greater than potential output
• C)Current inflation should equal expected inflation
• D)Current inflation should be less than expected inflation

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Definitions:

Insource

The practice of performing a business function or task within a company, instead of contracting it out to a third party.

Cross-Functional

Pertaining to a process, project, or team that involves and utilizes the expertise of members from different departments or areas of discipline.

Hybrid Supply Structures

Supply chain models that incorporate a mix of in-house and outsourced activities to optimize efficiency and flexibility.

Decentralized

Refers to the distribution of functions, powers, people, or organizations away from a central location or authority.