Refer to the following figure when answering the following questions.
Figure 11.4: IS Curve
-In Figure 11.4, the economy deviates from its long-run equilibrium at point(s):
A) a
B) b
C) d
D) c
E) a, b, and d

Question

Refer to the following figure when answering the following questions.
Figure 11.4: IS Curve 
-In Figure 11.4, the economy deviates from its long-run equilibrium at point(s):
A) a 
B) b 
C) d 
D) c 
E) a, b, and d

Quizplus · Accepted Answer

In the context of macroeconomic models, deviations from long-run equilibrium typically occur when the economy is not on its long-run aggregate supply curve. Points a, b, and d represent such deviations, as they are likely positions where the economy is experiencing either short-run economic fluctuations due to demand-side or supply-side shocks, or adjustments towards the long-run equilibrium.

Refer to the Following Figure When Answering the Following Questions