Which of the following is NOT true about a country's natural rate of output?
A) a long-run concept
B) a short-run concept
C) an aggregate supply concept
D) a neutrality of money concept

Question

Quizplus · Accepted Answer

The natural rate of output is considered a long-run concept because it reflects the economy's capacity to produce goods and services when resources are fully employed, without being influenced by short-term fluctuations in demand. It is related to the aggregate supply in the economy and is based on the idea of the neutrality of money in the long run, meaning changes in the money supply do not affect real variables like output. Therefore, it is not a short-run concept, making choice B incorrect.

Which of the Following Is NOT True About a Country's