The long-run economic growth model assumes that
A) the economy always moves toward equilibrium at full employment.
B) it takes a long time to arrive at the long run.
C) macroeconomic equilibrium at full employment is only a theory and has little to do with reality.
D) the economy is at full employment at all times.

Question

Quizplus · Accepted Answer

The long-run economic growth model is based on the assumption that the economy moves toward an equilibrium at full employment, reflecting the idea that over time, factors such as labor and capital adjust to bring the economy to a state of full employment.

The Long-Run Economic Growth Model Assumes That