TYP: SA
Exhibit 14A-3 Macro AD-AS Model

-In Exhibit 14A-3,the intersection of AD with SRAS indicates:
A) a short-run equilibrium.
B) a long-run equilibrium.
C) that the economy needs policies to reduce unemployment.
D) that the economy is at full employment.

Question

TYP: SA
Exhibit 14A-3 Macro AD-AS Model
 
-In Exhibit 14A-3,the intersection of AD with SRAS indicates:
A) a short-run equilibrium. 
B) a long-run equilibrium. 
C) that the economy needs policies to reduce unemployment. 
D) that the economy is at full employment.

Quizplus · Accepted Answer

The intersection of AD with SRAS indicates a short-run equilibrium where the economy is experiencing both equilibrium output level and price level. However, it does not necessarily mean that the economy is at full employment or that policies are needed to reduce unemployment.

TYP: SA Exhibit 14A-3 Macro AD-AS Model