-In the figure above, an equilibrium output greater than Y_n is ________ attainable in the ________-run. A) only; short B) only; long C) not; short D) always; long

Question

Quizplus · Accepted Answer

In the short-run, it is possible for an economy to produce beyond its natural level of output (Y_n) due to factors like increased demand or temporary boosts in productivity. However, in the long-run, the economy tends to return to its natural level of output due to resource constraints and adjustments in prices and wages.

-In the Figure Above, an Equilibrium Output Greater Than Yn

-In the Figure Above, an Equilibrium Output Greater Than Y_n