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

Question

Quizplus · Accepted Answer

A short run equilibrium occurs at the point where the short-run aggregate supply curve intersects the aggregate demand curve, representing the point where the quantity of goods and services supplied equals the quantity demanded at a given price level in the short run. The long-run aggregate supply curve represents the level of potential output in the long run and does not affect the short run equilibrium. The planned aggregate expenditure curve and investment demand curve are not directly related to the determination of short run equilibrium.

A Short Run Equilibrium Occurs at the Intersection of the Short-Run