Short-run macroeconomic equilibrium occurs at the intersection of
A) aggregate demand and short-run aggregate supply.
B) aggregate demand and long-run aggregate supply.
C) aggregate demand, short-run aggregate supply, and long-run aggregate supply.
D) short-run aggregate supply and long-run aggregate supply.

Question

Quizplus · Accepted Answer

Short-run macroeconomic equilibrium is achieved when the total quantity of output demanded (aggregate demand) equals the total quantity of output produced (short-run aggregate supply). Long-run aggregate supply is not a determinant of short-run equilibrium because it is not affected by short-term changes in the economy.

Short-Run Macroeconomic Equilibrium Occurs at the Intersection of