16
QuizMultiple Choice

Introduction to Macroeconomics — Quiz

Question 16 • Personal Finance and Economics

A long-run equilibrium occurs when long-run aggregate supply and aggregate demand meet. What does having long-run equilibrium indicate about a society?

Answer
A
The society is not using all of its resources effectively.
B
The society’s supply and demand have stagnated.
C
The society’s needs are being fully met.
D
The society is using all of its resources efficiently.

Explanation

Long-run equilibrium occurs when aggregate demand meets long-run aggregate supply, so real output is at the economy’s potential level. This means resources are being used efficiently, with the economy operating at full employment. It does not mean every societal need is fully met.

AI-written and checked against the verified answer.

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