A short-run macroeconomic equilibrium occurs
A) at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve.
B) at the intersection of the short-run aggregate supply curve and the aggregate demand curve.
C) at the intersection of the short-run aggregate supply curve, the long-run aggregate supply curve, and the aggregate demand curve.
D) when the rate at which prices of goods and services increase equals the rate at which money wage rates increase.

Question

Quizplus · Accepted Answer

A short-run macroeconomic equilibrium occurs at the intersection of the short-run aggregate supply curve and the aggregate demand curve. This point determines the equilibrium price level and the equilibrium level of output in the economy for the short run.

A Short-Run Macroeconomic Equilibrium Occurs