Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(03.05 MC) Which of the following is true about the long-run equilibrium in the economy? (1 point) The long-run equilibrium occurs when the aggregate demand

(03.05 MC) Which of the following is true about the long-run equilibrium in the economy? (1 point) The long-run equilibrium occurs when the aggregate demand equals the long-run aggregate supply, irrespective of the changes in the short-run aggregate supply. The long-run equilibrium is attained at the intersection of aggregate demand and long-run aggregate supply. As the price adjusts to this level, the short-run aggregate supply also crosses this point. The long-run equilibrium is attained when the amount of aggregate supply exceeds the amount of long-run aggregate demand. The long-run equilibrium is attained when the amount of aggregate demand equals the amount of short-run aggregate supply, as the long-run aggregate supply does not depend on the immediate price level. The long-run equilibrium is attained when the amount of long-run aggregate supply equals the amount of aggregate demand, and the short-run aggregate supply remains unaffected, since the prices are sticky

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Economics

Authors: Robert L Sexton

5th Edition

978-1439040249, 1439040249

More Books

Students also viewed these Economics questions

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago