-The data in the above figure indicate that the economy will be in a long- run macroeconomic equilibrium at a price level of
A)100.
B)120.
C)130.
D)140.

Question

-The data in the above figure indicate that the economy will be in a long- run macroeconomic equilibrium at a price level of
A)100. 
B)120. 
C)130. 
D)140.

Quizplus · Accepted Answer

In long-run macroeconomic equilibrium, the aggregate demand and aggregate supply intersect at the potential output level, which is often indicated by the price level where the economy is neither in inflationary nor recessionary gap. The figure likely shows this equilibrium at a price level of 120.

-The Data in the Above Figure Indicate That the Economy