Figure 15-3

-Refer to Figure 15-3.Which of the points in the above graph are possible long-run equilibria?
A) A and B
B) A and C
C) A and D
D) B and D

Question

Figure 15-3
 
-Refer to Figure 15-3.Which of the points in the above graph are possible long-run equilibria?
A) A and B 
B) A and C 
C) A and D 
D) B and D

Quizplus · Accepted Answer

In long-run equilibrium, the economy operates at full employment, where aggregate demand equals aggregate supply at the natural level of output. Points A and C likely represent such equilibria, as they are typically where the long-run aggregate supply curve intersects the aggregate demand curve.

Figure 15-3 -Refer to Figure 15-3.Which of the Points in the Above