In the long run, an economy will produce its potential output if__.
a. The price level is high.
b. Wages and prices are sufficiently flexible.
C. The expectations of workers and firms are the same in the long run and the short run.
d. Workers mistakenly believe that nominal wages equal real wages.

Question

18-06-2024
Business

Answered

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In the long run, an economy will produce its potential output if__.
a. The price level is high.
b. Wages and prices are sufficiently flexible.
C. The expectations of workers and firms are the same in the long run and the short run.
d. Workers mistakenly believe that nominal wages equal real wages.

Sagot :

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