Graphically the intersection of the aggregate demand curve and the short-run aggregate supply line determines:
A)potential output.
B)short-run equilibrium.
C)long-run equilibrium.
D)exogenous spending.

Question

Quizplus · Accepted Answer

Short-run equilibrium is identified by the intersection of the aggregate demand curve and the short-run aggregate supply line.

Graphically the Intersection of the Aggregate Demand Curve and the Short-Run