Exhibit 10-12
-Consider Exhibit 10-12.Aggregate demand is represented by AD₀ and the aggregate supply is AS₁₂₀ since the expected price level is 120.Which of the following identifies the the long-run equilibrium?

Question

Exhibit 10-12 Exhibit 10-12 -Consider Exhibit 10-12.Aggregate demand is represented by AD<sub>0</sub> and the aggregate supply is AS<sub>120</sub> since the expected price level is 120.Which of the following identifies the the long-run equilibrium? A) A B) B C) C D) I E) J

Exhibit 10-12 -Consider Exhibit 10-12.Aggregate demand is represented by AD<sub>0</sub> and the aggregate supply is AS<sub>120</sub> since the expected price level is 120.Which of the following identifies the the long-run equilibrium? A) A B) B C) C D) I E) J

-Consider Exhibit 10-12.Aggregate demand is represented by AD₀ and the aggregate supply is AS₁₂₀ since the expected price level is 120.Which of the following identifies the the long-run equilibrium?

Quizplus · Accepted Answer

The long-run equilibrium is at point A, where the aggregate demand curve (AD) intersects the long-run aggregate supply curve (LRAS). At this point, the price level is equal to the expected price level, and there is no excess demand or supply in the economy.

Exhibit 10-12 -Consider Exhibit 10-12.Aggregate Demand Is Represented by AD0 and the AD0

Exhibit 10-12 -Consider Exhibit 10-12.Aggregate Demand Is Represented by AD₀ and the AD₀