Short- run macroeconomic equilibrium always occurs when the
A)quantity of real GDP demanded equals the quantity of real GDP supplied.
B)economy is below full employment.
C)economy is above full employment.
D)economy is at full employment.
E)AD curve intersects the LAS curve.

Question

Quizplus · Accepted Answer

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the quantity of real GDP supplied, which is represented by the intersection of the aggregate demand (AD) curve and the short-run aggregate supply (SRAS) curve.

Short- Run Macroeconomic Equilibrium Always Occurs When the