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

Long-run equilibrium in an economy does not require that imports equal exports. The other conditions listed are related to the internal balance of the economy, such as inflation and output levels.

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