Exhibit 14A-6 Aggregate demand and supply model

-As shown in Exhibit 14A-6,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

Exhibit 14A-6 Aggregate demand and supply model
 
-As shown in Exhibit 14A-6,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 short-run equilibrium point is where AD₂ intersects with the short-run aggregate supply curve (SRAS). This point is labeled as E₂ on the graph.

Exhibit 14A-6 Aggregate Demand and Supply Model