Graphically, short-run equilibrium occurs at the intersection of the aggregate demand curve and:
A)the aggregate supply curve and potential output.
B)the planned aggregate expenditure line.
C)the aggregate supply curve.
D)potential output.

Question

Quizplus · Accepted Answer

In the short run, equilibrium in the economy is determined by the intersection of the aggregate demand curve and the aggregate supply curve.

Graphically, Short-Run Equilibrium Occurs at the Intersection of the Aggregate