__________ identifies the level of Real GDP the economy produces when all economywide adjustments have taken place and there are no misperceptions on the part of workers.
A) Short-run equilibrium
B) Disequilibrium
C) Long-run equilibrium
D) Equilibrium
E) none of the above

Question

Quizplus · Accepted Answer

Long-run equilibrium identifies the level of Real GDP the economy produces when all economy-wide adjustments have taken place, and there are no misperceptions on the part of workers. In long-run equilibrium, the economy produces at its potential output, which is determined by the factors of production and technology available.

__________ Identifies the Level of Real GDP the Economy Produces