A short run equilibrium occurs at the intersection of the ________ and the aggregate demand curve.
A)long-run aggregate supply curve
B)short-run aggregate supply curve
C)planned aggregate expenditure curve
D)investment demand curve

Question

Quizplus · Accepted Answer

In the short-run, equilibrium occurs where the short-run aggregate supply curve intersects the aggregate demand curve. The long-run aggregate supply curve is not relevant for determining short-run equilibrium, while the planned aggregate expenditure and investment demand curves are not commonly used in the analysis of short-run equilibrium.

A Short Run Equilibrium Occurs at the Intersection of the ________