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:

Aerobic Respiration

A process of producing cellular energy involving oxygen. Cells break down food in the mitochondria in a long, multistep process that produces roughly 36 ATP.

Oxaloacetate

A four-carbon molecule that plays a vital role in the citric acid cycle (Krebs cycle) and gluconeogenesis, involved in energy production and glucose synthesis.

Anaerobic Pathways

Anaerobic pathways are biochemical processes that enable cells to produce energy without the need for oxygen.

Glycogen

Highly branched polysaccharide of glucose monomers. Principal form of stored sugars in animals.