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:

Disaster

A sudden event, such as an accident or a natural catastrophe, that causes great damage or loss of life.

Titanic

A British passenger liner that sank in the North Atlantic Ocean in 1912 after hitting an iceberg, leading to significant loss of life.

Ocean Floor

The bottom surface of the Earth's oceans, consisting of various geographical features like plains, mountains, and trenches, providing habitat for diverse marine life.

Submersibles

Watercraft designed for underwater operations, typically for research, exploration, or recreational purposes.