In the Long Run

question 129

Multiple Choice

In the long run

• A)GDP > potential GDP.
• B)unemployment is at its natural rate.
• C)LRAS and SRAS lie on the same line.
• D)the inflation rate is zero.

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Definitions:

Motivation Loss

The reduction in the drive or willingness to engage in an activity, often leading to decreased effort and performance.

Evaluation Apprehension

Anxiety or fear about being judged or evaluated by others, which can affect performance and behavior.

Process Loss

Reductions in group performance compared to individual performance, often due to coordination and motivation problems within the group.