Short-run equilibrium output is the level of output at which actual output:
A)equals potential output.
B)maximizes firm profits.
C)equals real GDP per capita.
D)equals planned aggregate expenditure.

Question

Quizplus · Accepted Answer

When the economy is in short-run equilibrium, the aggregate planned expenditure curve intersects the 45-degree line, which shows where actual output and planned expenditures are equal.

Short-Run Equilibrium Output Is the Level of Output at Which