According to short run macroeconomic analysis, once an economy attains equilibrium:
A) there will be no unemployment in the economy.
B) investment must be zero.
C) consumption will be equal to or greater than income.
D) there may or may not be unemployment.

Question

Quizplus · Accepted Answer

In short-run macroeconomic analysis, equilibrium does not imply the absence of unemployment. Instead, it means that aggregate demand equals aggregate supply, which can occur at levels of output where there is still unemployment. This is known as equilibrium unemployment or the natural rate of unemployment.

According to Short Run Macroeconomic Analysis, Once an Economy Attains