Graphically, Short-Run Equilibrium Occurs at the Intersection of the Aggregate

question 13

Multiple Choice

Graphically, short-run equilibrium occurs at the intersection of the aggregate demand curve and:

• A)the aggregate supply curve and potential output.
• B)the planned aggregate expenditure line.
• C)the aggregate supply curve.
• D)potential output.

---

Definitions:

Mutually Exclusive

Situations, events, or decisions that cannot occur or be undertaken simultaneously—if one happens, the other cannot.

Projects

Initiatives or plans undertaken to achieve specific objectives, which can be either short-term or long-term in nature.

Payback Period

The time required for the return on an investment to "pay back" the sum of the original investment, often used for capital budgeting.

Investment

Disbursing assets, particularly money, with the objective of obtaining income or profit.