A Short-Run Equilibrium Occurs

question 114

Multiple Choice

A short-run equilibrium occurs

• A)at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve.
• B)at the intersection of the short-run aggregate supply curve and the aggregate demand curve.
• C)at the intersection of the short-run aggregate supply curve,the long-run aggregate supply curve,and the aggregate demand curve.
• D)when the rate at which prices increase equals the rate at which input prices increase.

---

Definitions:

Fixed Period

A specified duration of time during which certain conditions or rules are applied or must be followed.

Costs

Expenses incurred in the production and distribution of a product or in the provision of a service.

Option to Abandon

A business decision tool that allows a company to cease investment in a project if it no longer becomes financially viable.

Discounted Cash Flow Analysis

Discounted Cash Flow (DCF) Analysis is a method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.