Which one of the following statements does not describe some aspect of a short-run macroeconomic equilibrium?
A) Aggregate demand equals aggregate supply.
B) A price level is established at which the goods and money markets are in equilibrium.
C) There is no tendency for the price or output levels to change.
D) All individuals who are willing to work at the going market wage are able to find a job.

Question

Quizplus · Accepted Answer

In a short-run macroeconomic equilibrium, it is not guaranteed that all individuals willing to work at the going market wage will find a job. This condition describes a situation of full employment, which is not a necessary component of short-run equilibrium. Short-run equilibrium can exist with unemployment.

Which One of the Following Statements Does Not Describe Some