-The data in the above figure indicate that the economy will be in a long- run macroeconomic equilibrium at a price level of
A) 120.
B) 130.
C) 100.
D) 140.

Question

-The data in the above figure indicate that the economy will be in a long- run macroeconomic equilibrium at a price level of
A) 120. 
B) 130. 
C) 100. 
D) 140.

Quizplus · Accepted Answer

The correct answer is A because the long-run macroeconomic equilibrium is where the aggregate demand curve (AD) intersects the long-run aggregate supply curve (LRAS). In the given figure, the AD curve intersects the LRAS curve at a price level of 120.

-The Data in the Above Figure Indicate That the Economy