In the short run,equilibrium output in the goods and services market may be either above or below the full-employment level,but in the long run,it
A)must be less than full-employment output.
B)must be greater than full-employment output.
C)will move to full-employment output.
D)depends on aggregate demand,not just long-run aggregate supply.

Question

Quizplus · Accepted Answer

In the long run, the economy has enough time to adjust to changes in the goods and services market, and the economy will move towards full-employment output, which is the output level that corresponds to the natural rate of unemployment, the point at which the economy is producing at its potential level. This is because in the long run, all factors of production, including labor, capital, and technology, are fully adjustable, allowing the economy to reach its full potential.

In the Short Run,equilibrium Output in the Goods and Services