The conditions for long-run equilibrium include each of the following, except:
A) imports equal exports.
B) current inflation is steady and equals target inflation.
C) current output equals potential output.
D) current inflation equals expected inflation.

Question

Quizplus · Accepted Answer

In long-run equilibrium, the focus is on factors like steady inflation rates, output matching potential output, and inflation expectations aligning with current inflation. The condition of imports equaling exports is more directly related to the balance of trade and not a specific requirement for long-run economic equilibrium.

The Conditions for Long-Run Equilibrium Include Each of the Following