When Does Short-Run Macroeconomic Equilibrium Occur

question 16

Multiple Choice

When does short-run macroeconomic equilibrium occur?

• A)When the price level is constant in the short-run.
• B)When the equilibrium lies on the long-run supply curve.
• C)When aggregate demand and short-run supply intersect.
• D)The two criteria - that aggregate demand and short-run aggregate supply intersect and that the equilibrium lies on the long-run supply curve - must both be satisfied.