Within the framework of the AD/AS model, in the long run, output
A) will exceed the economy's long-run capacity.
B) will be less than the economy's long-run capacity.
C) will converge toward the economy's long-run capacity.
D) must equal approximately 95 percent of the economy's long-run capacity.
Correct Answer:
Verified
Q106: When the economy is operating at an
Q107: Within the AD/AS model, how does an
Q108: The situation in which actual output exceeds
Q109: Once decision makers fully adjust to an
Q110: An unanticipated decline in the real interest
Q112: Which of the following will most likely
Q113: Which of the following will most likely
Q114: If there is an unanticipated increase in
Q115: The short-run effect of a sudden increase
Q116: How will an unanticipated decrease in aggregate
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents