If the Intersection of the Short-Run Aggregate Supply Curve and the Aggregate

question 251

Multiple Choice

If the intersection of the short-run aggregate supply curve and the aggregate demand curve also intersect the long-run aggregate supply curve, then the economy is

• A) at full employment.
• B) operating at more than full employment.
• C) in a recession.
• D) operating at less than full employment.

---

Definitions:

Elastic Demand

A scenario in which the need for a product or service drastically shifts due to variations in its cost.

Increase Revenue

Increasing revenue refers to actions or strategies aimed at raising the total amount of money generated from sales of goods or services.

Firm

A business organization, such as a corporation or partnership, that sells goods or services in exchange for money.

Cross-Price Elasticity

A measure of how the demand for one good responds to changes in the price of another good.