Which of the Following Statements Is True About the Economy

question 40

Multiple Choice

Which of the following statements is true about the economy in the long run?

• A)Equilibrium output must be below potential GDP and the rate of unemployment must exceed the natural rate.
• B)Production costs are close to zero.
• C)The rate of unemployment is zero in the long run.
• D)The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
• E)The aggregate supply curve is a horizontal line.

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Definitions:

Ligaments

Fibrous connective tissues that connect bones to other bones, providing stability and support to joints.

Hyaline Cartilage

A type of cartilage found at the ends of bones, in the nose, and in the trachea, characterized by its glossy, translucent appearance.

Synovial Membrane

A specialized connective tissue lining the inner surface of capsules of synovial joints and tendon sheaths, producing synovial fluid for lubrication.

Osteoblasts

Cells responsible for bone formation, playing a crucial role in the growth, maintenance, and repair of the skeletal system.