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:

Protective Put

A defensive financial strategy that involves buying a put option for a stock that is already owned, giving the holder the right to sell the stock at a specified price, thereby providing a hedge against potential declines.

Downside Risk

The potential for loss in value of an investment, often evaluated in comparison to the expected return.

Seller Of A Put

An investor who sells put options in the expectation that the underlying stock price will remain above the option's strike price.

Purchase Shares

The act of buying ownership units in a company, often done through a stock exchange, to potentially earn dividends or sell at a higher price in the future.