A short-run equilibrium occurs
A. at the intersection of the long-run aggregate supply curve and the aggregate demand curve.
B. at the intersection of the short-run aggregate supply curve and the aggregate demand curve.
C. at the real GDP associated with full employment.
D. at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve.
Answer: B
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Which of the following best describes the chain of events in the money creation process?
A) The monetary base increases. Banks acquire excess reserves which they loan out, increasing deposits and also the quantity of money. The new deposits then create additional excess reserves. B) Currency is drained from the quantity of money into the banking system, where it is lent out. The loans are spent, increasing the currency drain and also the quantity of money. C) Desired reserves increase, encouraging banks to seek new deposits. When the new depositors come in, desired reserves decrease and the quantity of money increases. D) Low interest rates discourage people from holding currency. When they deposit the currency, interest rates rise, increasing the quantity of money.
Which of the following is a component of aggregate demand?
A. Net exports B. Income C. Government revenues D. Taxes
Garbage is scarce because it is abundant
a. True b. False Indicate whether the statement is true or false
Which of the following is an advantage of the U.S. government investing in R&D?
a. New industries and jobs are potentially created. b. Tax rates for corporations are typically reduced. c. The sources public goods are closely monitored. d. The number of free riders is sharply reduced.