Figure 10-18

-Based on Figure 10-18,when the aggregate demand curve is in the position AD₁,the economy's position of long-run equilibrium corresponds to point
A)E₁.
B)E₂.
C)E₃.
D)E₁ or E₂.

Question

Figure 10-18
 
-Based on Figure 10-18,when the aggregate demand curve is in the position AD₁,the economy's position of long-run equilibrium corresponds to point
A)E₁. 
B)E₂. 
C)E₃. 
D)E₁ or E₂.

Quizplus · Accepted Answer

At point E₁, the aggregate demand curve (AD₁) intersects the long-run aggregate supply curve (LRAS), indicating long-run equilibrium.

Figure 10-18 -Based on Figure 10-18,when the Aggregate Demand Curve Is in Demand