Asked by Stone Jamison on Jul 01, 2024
Refer to Figure 33-1. The natural level of output occurs at
A) Y1.
B) Y2.
C) Y3.
D) both Y1 and Y3.
Natural Level
Refers to a state that an economic variable tends to trend towards in the long term, unaffected by short-term fluctuations.
Output
In economics, output refers to the total amount of goods and services produced by an economy or a firm in a given period.
- Evaluate the effects of changes in aggregate demand and aggregate supply on the economy's movement towards long-run equilibrium.
Learning Objectives
- Evaluate the effects of changes in aggregate demand and aggregate supply on the economy's movement towards long-run equilibrium.