The real output of the economy under conditions of full employment
A) is long-run aggregate supply.
B) is long-run aggregate demand.
C) happens only when there is no inflation.
D) is determined by the real-balance effect.

Question

Quizplus · Accepted Answer

The real output of the economy under conditions of full employment is long-run aggregate supply, as the economy is producing at its maximum potential output with all resources being utilized efficiently.

The Real Output of the Economy Under Conditions of Full