Author Question: Which of the following statements is true about the economy in the long run? a. Equilibrium output ... (Read 80 times)

fbq8i · **on:** Jun 30, 2018

Which of the following statements is true about the economy in the long run?
a. Equilibrium output is below potential GDP and the rate of unemployment exceeds the natural rate.
b. Production costs are close to zero in the long run.
c. The rate of unemployment is zero in the long run.
d. The aggregate demand curve plays no role in determining the equilibrium level of real GDP.
e. The aggregate supply curve is a horizontal line.

Question 2

In Europe, birth rates have fallen as the stork population decreased. This is likely
a. a normative statement.
b. confusing correlation and causation.
c. the fallacy of composition.
d. all of the above