When actual output equals potential output and the inflation rate is stable,the economy is said to be in ________ equilibrium.

Name: When actual output equals potential output and the inflation rate is stable,the economy is said to be in ________ equilibrium.
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Question

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When actual output equals potential output, the economy is said to be in long-run equilibrium. At this point, there is no pressure on prices or wages to either rise or fall, which results in a stable inflation rate.

When Actual Output Equals Potential Output and the Inflation Rate