Figure 13-4 shows the short-run macroeconomic equilibrium of an economy at Point A. In the figure, Point A suggests that:Figure 13-4
A)the economy is running a balance of payment deficit.
B)there is a surplus of money in the economy.
C)the economy is operating at long-run equilibrium.
D)prices are falling in the economy.
E)there is a low level of unemployment in the economy.

Question

Figure 13-4 shows the short-run macroeconomic equilibrium of an economy at Point A. In the figure, Point A suggests that:Figure 13-4 
A)the economy is running a balance of payment deficit. 
B)there is a surplus of money in the economy. 
C)the economy is operating at long-run equilibrium. 
D)prices are falling in the economy. 
E)there is a low level of unemployment in the economy.

Quizplus · Accepted Answer

The Answer of Figure 13-4 shows the short-run macroeconomic equilibrium of an economy at Point A. In the figure, Point A suggests that:Figure 13-4 
A)the economy is running a balance of payment deficit. 
B)there is a surplus of money in the economy. 
C)the economy is operating at long-run equilibrium. 
D)prices are falling in the economy. 
E)there is a low level of unemployment in the economy.

Figure 13-4 Shows the Short-Run Macroeconomic Equilibrium of an Economy