Figure 10-18

-As shown in Figure 10-18,the economy's point of short-run equilibrium,given by the shift of the aggregate demand curve from AD₁ to AD₂,is
A)E₁.
B)E₂.
C)E₃.
D)unable to be determined.

Question

Figure 10-18
 
-As shown in Figure 10-18,the economy's point of short-run equilibrium,given by the shift of the aggregate demand curve from AD₁ to AD₂,is
A)E₁. 
B)E₂. 
C)E₃. 
D)unable to be determined.

Quizplus · Accepted Answer

The point of short-run equilibrium is where the aggregate demand curve intersects the short-run aggregate supply curve. In this case, that intersection point is E₂. Therefore, the answer is B.

Figure 10-18 -As Shown in Figure 10-18,the Economy's Point of Short-Run Equilibrium,given