The figure given below shows short run and long run equilibrium in an aggregate demand-aggregate supply model.The economy shown in this figure is:

A)in a long-run equilibrium at the price level P and income level Y.
B)in a short-run equilibrium at the price level P and income level Y.
C)experiencing a contractionary gap at price level P and income level Y.
D)experiencing an expansionary gap at price level P" and income level Y'.
E)in a short-run equilibrium at the price level P' and income level Y.

Question

The figure given below shows short run and long run equilibrium in an aggregate demand-aggregate supply model.The economy shown in this figure is:

A)in a long-run equilibrium at the price level P and income level Y. 
B)in a short-run equilibrium at the price level P and income level Y. 
C)experiencing a contractionary gap at price level P and income level Y. 
D)experiencing an expansionary gap at price level P" and income level Y'. 
E)in a short-run equilibrium at the price level P' and income level Y.

Quizplus · Accepted Answer

The Answer of The figure given below shows short run and long run equilibrium in an aggregate demand-aggregate supply model.The economy shown in this figure is:

A)in a long-run equilibrium at the price level P and income level Y. 
B)in a short-run equilibrium at the price level P and income level Y. 
C)experiencing a contractionary gap at price level P and income level Y. 
D)experiencing an expansionary gap at price level P" and income level Y'. 
E)in a short-run equilibrium at the price level P' and income level Y.

The Figure Given Below Shows Short Run and Long Run