Long-Run Macroeconomic Equilibrium Occurs When

question 38

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) unemployment equals zero.
• D) output is above potential GDP.

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Definitions:

Stimulus Assimilation

The process by which individuals integrate new information into their existing knowledge or frameworks.

National Brand

A product brand that is marketed and recognized across an entire country.

Private Brand

also known as a store brand or own brand, is a product that is owned, produced, and sold exclusively by a particular retailer.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.