12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium
-On the graph above,at the point where quantity demanded equals quantity supplied (let's call it pointA),the economy has reached its ________.
A)general equilibrium,and barring any shocks,it will not move from A
B)long-run equilibrium,and barring any shocks,it will not move from A
C)short-run equilibrium,and even without any shocks,it may move away from A
D)short-run equilibrium,and barring any shocks,it will not move from A
E)none of the above

Question

12.2 Equilibrium in Aggregate Demand and Supply Analysis
AD - AS Equilibrium 
-On the graph above,at the point where quantity demanded equals quantity supplied (let's call it pointA),the economy has reached its ________.
A)general equilibrium,and barring any shocks,it will not move from A 
B)long-run equilibrium,and barring any shocks,it will not move from A 
C)short-run equilibrium,and even without any shocks,it may move away from A 
D)short-run equilibrium,and barring any shocks,it will not move from A 
E)none of the above

Quizplus · Accepted Answer

At the point where quantity demanded equals quantity supplied, the economy is in short-run equilibrium. However, even without any shocks, it may move away from this point due to changes in factors like consumer preferences or production costs.