Short-run macroeconomic equilibrium cannot be achieved when:
A) inflation rates are low.
B) the short-run aggregate supply and aggregate demand curves intersect.
C) the short-run aggregate supply quantity exceeds the aggregate demand quantity.
D) inflation rates are high.

Question

Quizplus · Accepted Answer

Short-run macroeconomic equilibrium occurs when the quantity of goods and services supplied equals the quantity demanded, which is represented by the intersection of the short-run aggregate supply and aggregate demand curves. If the short-run aggregate supply quantity exceeds the aggregate demand quantity, equilibrium is not achieved.

Short-Run Macroeconomic Equilibrium Cannot Be Achieved When