Question

What is necessarily true when an economy is in long-run equilibrium?

Answer 1

Answer:

Explanation:

On the off chance that present genuine GDP is not exactly full work yield, an economy is in a downturn. On the off chance that present genuine GDP is higher than full work yield, an economy is encountering a blast. On the off chance that the present yield is equivalent to the full work yield, at that point we state that the economy is in since a long time ago run a balance.

Answer 2

Answer:

The correct answer is: The actual rate of unemployment equals the natural rate of unemployment.

Explanation:

A long-term economy occurs when aggregate supply does not reflect actual production, but another potential or long-term one. In that case, potential production and aggregate demand are the variables that determine the price level. This affects, therefore, the nominal salary rate.

Economists and policy makers love to analyze natural rates, the level where economic indicators should be when growth has reached its potential and inflation is stable. This helps central banks assess economic advances.

The natural unemployment rate is the unemployment rate when the labor market is in equilibrium, when real wages have found their level in the free market and when the aggregate supply of labor is in balance with the aggregate demand of labor working. The natural unemployment rate represents the unemployment rate at which the economy naturally gravitates in the long term.