Which of the Following Occurs in the Long Run

question 173

Multiple Choice

Which of the following occurs in the long run?

• A) Prices are sticky.
• B) Unexpected inflation is absent.
• C) The SRAS curve intersects the AD curve at an output growth rate higher than the Solow growth rate.
• D) Workers confuse real wages with nominal wages.

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, or other instruments at a specified price within a specific time period.

September

The ninth month of the year in the Gregorian calendar, often associated with the beginning of the academic year in many countries.

Put Option

An economic agreement granting the possessor the option to offload a defined quantity of an underlying asset at a fixed price before a certain deadline, without any compulsion.