-Based on the figure above, short-run equilibrium occurs at the price level of
A) 120 and real GDP of $5 trillion.
B) 130 and real GDP of $10 trillion.
C) 140 and real GDP of $15 trillion.
D) 130 and real GDP of $15 trillion.

Question

-Based on the figure above, short-run equilibrium occurs at the price level of
A) 120 and real GDP of $5 trillion. 
B) 130 and real GDP of $10 trillion. 
C) 140 and real GDP of $15 trillion. 
D) 130 and real GDP of $15 trillion.

Quizplus · Accepted Answer

Short-run equilibrium in an economy occurs where the aggregate demand curve intersects the short-run aggregate supply curve. Choice B correctly identifies the price level and real GDP where these two curves intersect, indicating the point of short-run equilibrium.

-Based on the Figure Above, Short-Run Equilibrium Occurs at the Price