When AD is equal to SRAS at an output level equal to the LRAS curve,
A)we are at long-run macroeconomic equilibrium.
B)we are at the natural rate of unemployment.
C)both a and b are true.
D)neither a nor b is true.

Question

Quizplus · Accepted Answer

When AD equals SRAS at the output level of LRAS, the economy is in long-run macroeconomic equilibrium, and the unemployment rate is at its natural rate.

When AD Is Equal to SRAS at an Output Level