When the Economy Is Operating at a Point Where Aggregate

question 36

Multiple Choice

When the economy is operating at a point where aggregate demand equals long-run aggregate supply, it must be true that:

• A) aggregate demand also equals short-run aggregate supply.
• B) the economy is in long-run equilibrium.
• C) prices and expected prices are the same.
• D) All of these are true.

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Definitions:

Simplicity

The quality of being easily understood or executed without unnecessary complexity; often valued in scientific theories and models for its elegance and efficiency.

Positivity

The practice of maintaining a positive attitude and focusing on the good aspects of any situation.

Objectivity

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Readability

The ease with which a reader can understand or interpret text.