Which of the Following Statements Is True

question 149

Multiple Choice

Which of the following statements is true?

• A) The long-run aggregate supply (LRAS)curve shows the Real GDP the economy is prepared to supply at different price levels,assuming wage rates and all other resource prices have fully adjusted to eliminate a recessionary or inflationary gap.
• B) Laissez-faire is a government policy of raising aggregate demand in order to eliminate a recessionary gap.
• C) An economy can operate beyond its physical PPF,but not beyond its institutional PPF.
• D) If the economy is self-regulating,it is always in long-run equilibrium.
• E) a and c

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Definitions:

Reform Movements

Social or political movements aimed at making gradual improvements or changes in society, often focused on issues like civil rights, gender equality, or environmental protection.

Mid-19th Century

The period approximately between 1830 to 1870, marked by significant industrial, social, and political changes in many parts of the world.

American Culture

Refers to the set of customs, traditions, and values of the people living in the United States.

European Influence

Refers to the impact and effect European cultures, policies, and economics have had on other regions worldwide, shaping global history, colonization, and international relations.