Where the aggregate demand curve and the short-run aggregate supply curve intersect
A)the long-run aggregate supply curve must also intersect at the same point.
B)inflation must be increasing.
C)structural and frictional unemployment equal zero.
D)the economy is in short-run macroeconomic equilibrium.

Question

Quizplus · Accepted Answer

The intersection of the aggregate demand curve and the short-run aggregate supply curve represents the point of short-run macroeconomic equilibrium, where the output level and price level are determined in the short run. The other options are not necessarily true or relevant to this intersection point.

Where the Aggregate Demand Curve and the Short-Run Aggregate Supply