The Economy Is in Short-Run Equilibrium

question 40

Multiple Choice

The economy is in short-run equilibrium:

• A)when the AD and AS curves intersect at potential output Y*.
• B)when the AD and AS curves intersect at a level of real GDP that is above or below Y*.
• C)when the AD and AS curves become vertical.
• D)at the peak of the business cycle.

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Definitions:

Gen Xers

Individuals born approximately between 1965 and 1980 who are characterized by their adaptability, tech-savviness, and independent work ethics.

Baby Boomers

A demographic group defined by people born during the post-World War II baby boom, approximately between 1946 and 1964.

Behavioral Component

Refers to the actions or reactions of an individual in response to external or internal stimuli.

Attitude

A predisposition to respond positively or negatively to someone or something.