Figure 20-2.
-Refer to Figure 20-2. Point B represents
A)a short-run equilibrium and a long-run equilibrium.
B)a short-run equilibrium but not a long-run equilibrium.
C)a long-run equilibrium but not a short-run equilibrium.
D)neither a short-run equilibrium nor a long-run equilibrium.

Question

Figure 20-2. 
-Refer to Figure 20-2. Point B represents
A)a short-run equilibrium and a long-run equilibrium. 
B)a short-run equilibrium but not a long-run equilibrium. 
C)a long-run equilibrium but not a short-run equilibrium. 
D)neither a short-run equilibrium nor a long-run equilibrium.

Quizplus · Accepted Answer

Point B represents a short-run equilibrium because it is a point where the aggregate demand and short-run aggregate supply curves intersect, but it may not be on the long-run aggregate supply curve, indicating it is not a long-run equilibrium.

Figure 20-2. -Refer to Figure 20-2. Point B Represents