-Refer to Figure 15.2. Adjustment from a short-run equilibrium to the long-run equilibrium is represented by a movement from point ________ to point ________.
A) a; e
B) a; c
C) e; b
D) a; b

Question

-Refer to Figure 15.2. Adjustment from a short-run equilibrium to the long-run equilibrium is represented by a movement from point ________ to point ________.
A) a; e 
B) a; c 
C) e; b 
D) a; b

Quizplus · Accepted Answer

In the context of economic models, moving from a short-run equilibrium to a long-run equilibrium typically involves adjustments that restore full employment or potential output. Point 'a' represents the short-run equilibrium, and point 'b' represents the long-run equilibrium where the economy is at full employment.