In a long-run equilibrium of aggregate demand and aggregate supply,
A)output prices are consistent and sustainable relative to input prices.
B)actual values are equal to expected values.
C)wages and salaries are high enough relative to the cost of living to make work worthwhile.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In a long-run equilibrium of aggregate demand and aggregate supply, output prices are consistent and sustainable relative to input prices, actual values are equal to expected values, and wages and salaries are high enough relative to the cost of living to make work worthwhile. Therefore, all of the above are correct.

In a Long-Run Equilibrium of Aggregate Demand and Aggregate Supply