Question: At a short-run equilibrium ________, while at a long-run equilibrium ________. a) output is at a level consistent with inflation; there is an output gap

At a short-run equilibrium ________, while at a long-run equilibrium ________.

a) output is at a level consistent with inflation; there is an output gap

b) output equals potential output; the inflation rate is stable

c) the inflation rate is stable; there is an output gap

d) there is an output gap; output equals potential output

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