Figure 24-3
-Refer to Figure 24-3. Which of the points in the above graph are possible long-run equilibria?
A) A and B
B) A and C
C) A and D
D) B and D

Question

Figure 24-3 
-Refer to Figure 24-3. Which of the points in the above graph are possible long-run equilibria?
A) A and B 
B) A and C 
C) A and D 
D) B and D

Quizplus · Accepted Answer

In the long run, equilibrium occurs where the aggregate demand curve intersects the long-run aggregate supply curve, which is typically represented by a vertical line at the full employment level of output. Points A and C are likely on this line, indicating potential long-run equilibria.

Figure 24-3 -Refer to Figure 24-3. Which of the Points in the Points