Long-Run Macroeconomic Equilibrium Occurs When

question 205

Multiple Choice

Long-run macroeconomic equilibrium occurs when

• A)aggregate demand equals short-run aggregate supply.
• B)aggregate demand equals short-run aggregate supply and they intersect at a point on the long-run supply curve.
• C)structural and frictional unemployment equals zero.
• D)output is above potential GDP.

---

Definitions:

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based on a simple interest rate over a specified period.

360-Day Year

A simplified calculation method used in finance, assuming a year consists of 360 days for the purpose of interest calculation.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or investment, based on the original amount without compounding.

360-Day Year

An accounting method that simplifies interest calculations by using 360 days as the length of a year.