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:

State Official

An individual holding an office or position of authority in a government at the state level, responsible for executing the laws and policies of the state.

Vietnam

A country in Southeast Asia known for its rich history, cultural heritage, and economic growth.

Easement By Necessity

A right of access granted to a property owner because it is absolutely necessary for the use or development of their property, often arising when a property is landlocked.

Landlocked

A property that has no direct access to a public street or way, typically requiring passage through another property to reach a road.