The short-run equilibrium in the dynamic model of aggregate demand and aggregate supply is determined by the intersection of the: A)DAD_t and DAS_{t - 1}. B)DAD_t and DAS_t. C)Y_t and DAS_t. D)DAD_{t - 1} and Y_t.

Question

Quizplus · Accepted Answer

The short-run equilibrium in the dynamic model of aggregate demand and aggregate supply is determined by the intersection of the aggregate demand curve (DAD) and the short-run aggregate supply curve (DAS).

The Short-Run Equilibrium in the Dynamic Model of Aggregate Demand