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Which of the following is true about the long-run equilibrium in the economy? The long-run equilibrium occurs when the aggregate demand equals the long-run aggregate
Which of the following is true about the long-run equilibrium in the economy? 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
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