Which Macroeconomic Performance Targets Are Not Represented by Long-Run Aggregate

question 251

Multiple Choice

Which macroeconomic performance targets are not represented by long-run aggregate supply?

• A) economic growth and stable prices
• B) economic growth and full employment
• C) economic growth and potential GDP
• D) full employment and potential GDP
• E) stable prices and potential GDP

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Definitions:

Subsidies

Financial assistance provided by governments to individuals, businesses, or other governments, aiming to encourage certain activities or reduce the prices of goods and services.

Policy Contradictions

Situations where policies or regulations implemented by governments or organizations have conflicting objectives or outcomes.

Public Choice Theory

A framework that applies economic principles to political science, analyzing how public decisions and policies are made.

Rent-Seeking Behavior

Activities aimed at increasing one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.