In the long run, the economy operates at full employment.

Name: In the long run, the economy operates at full employment.
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In the long run, the economy operates at its natural level of full employment, where all available labor and capital resources are utilized. This is known as the long-run equilibrium. However, in the short run, the economy may experience unemployment or inflationary gaps due to temporary shocks or changes in economic conditions.

In the Long Run, the Economy Operates at Full Employment