Figure 13-3
-Refer to Figure 13-3.Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y₁ represents potential GDP.

Question

Figure 13-3 Figure 13-3 -Refer to Figure 13-3.Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y<sub>1</sub> represents potential GDP. A) A and B B) A and C C) C and D D) B and D

Figure 13-3 -Refer to Figure 13-3.Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y<sub>1</sub> represents potential GDP. A) A and B B) A and C C) C and D D) B and D

-Refer to Figure 13-3.Which of the points in the above graph are possible short-run equilibria but not long-run equilibria? Assume that Y₁ represents potential GDP.

Quizplus · Accepted Answer

In the short run, the economy may experience equilibrium at point B or point D. However, in the long run, the economy will adjust to the potential GDP level and only the equilibrium point A will be sustainable. Therefore, points B and D are possible short-run equilibria but not long-run equilibria.

Figure 13-3 -Refer to Figure 13-3.Which of the Points in the Above