In the Short Run, the Equilibrium Price Level and the Equilibrium

question 117

Multiple Choice

In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of

• A) the aggregate demand, the short-run aggregate supply and the long-run aggregate supply curves.
• B) the short-run aggregate supply and the long-run aggregate supply curves.
• C) the aggregate demand and the short-run aggregate supply curves.
• D) the aggregate demand and the long-run aggregate supply curves.

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Definitions:

Market Transaction

An exchange of goods, services, or financial assets in return for money between parties within a marketplace.

Emission Control Devices

Technologies or equipment installed on vehicles or industrial plants to reduce pollutants released into the atmosphere.

External Costs

Costs that are not borne by the parties involved in an economic transaction but by other individuals or society at large.