Short-run macroeconomic equilibrium always occurs when the
A)economy is at full employment.
B)economy is below full employment.
C)economy is above full employment.
D)quantity of real GDP demanded equals the quantity of real GDP supplied.
E)AD curve intersects the LAS curve.

Question

Quizplus · Accepted Answer

Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded equals the quantity of real GDP supplied. This means that there is no pressure on prices to change, and the economy is operating at a point where aggregate demand and aggregate supply intersect. It is important to note that full employment may or may not be achieved at this point.

Short-Run Macroeconomic Equilibrium Always Occurs When the