Question

Which one of the following is not true when the economy is in macroeconomic​ equilibrium? A. When the economy is at​ long-run equilibrium, actual GDPequalspotential GDP. B. When the economy is at​ long-run equilibrium, firms will have excess capacity. C. When the economy is at​ long-run equilibrium, total unemploymentequalsfrictional unemploymentplusstructural unemployment. D. When the economy is at​ long-run equilibrium, SRASequalsADequalsLRAS.

Answer 1

Answer:

The correct answer to the following question will be Option C.

Explanation:

• Throughout the macroeconomic equilibrium, the aggregate supply curve becomes equivalent to something like the supply curve, the real GDP seems to be comparable to potential Output (GDP), however, if frictional as well as systemic unemployment seems to be the maximum total poverty throughout the longer term.
• Consequently, whenever the economy seems to be in macroeconomic equilibrium, the argument which is not accurate would be that the businesses would have excess power.

So that Option C is the right answer.