The figure given below shows the aggregate demand curve and the short-run aggregate supply curve of an economy.In this figure,short-run equilibrium occurs at:

A)point b,where actual output exceeds potential output.
B)point a,where actual output exceeds potential output.
C)point c,where actual price level exceeds the expected price level.
D)point c,where the actual price level is less than the expected price level.
E)point b,where the actual price level exceeds the expected price level.

Question

The figure given below shows the aggregate demand curve and the short-run aggregate supply curve of an economy.In this figure,short-run equilibrium occurs at:

A)point b,where actual output exceeds potential output. 
B)point a,where actual output exceeds potential output. 
C)point c,where actual price level exceeds the expected price level. 
D)point c,where the actual price level is less than the expected price level. 
E)point b,where the actual price level exceeds the expected price level.

Quizplus · Accepted Answer

The Answer of The figure given below shows the aggregate demand curve and the short-run aggregate supply curve of an economy.In this figure,short-run equilibrium occurs at:

A)point b,where actual output exceeds potential output. 
B)point a,where actual output exceeds potential output. 
C)point c,where actual price level exceeds the expected price level. 
D)point c,where the actual price level is less than the expected price level. 
E)point b,where the actual price level exceeds the expected price level.

The Figure Given Below Shows the Aggregate Demand Curve and the Short-Run