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

Long-run aggregate supply represents the economy’s potential output, which is produced when resources are fully employed. When aggregate demand meets long-run aggregate supply, the economy is at its long-run equilibrium and is using its resources efficiently. This does not mean every need is fully met, so choice B, “The society is using all of its resources efficiently,” is correct.

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