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A Long Run Equilibrium Occurs at the Intersection of the Short-Run

question 80

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A long run equilibrium occurs at the intersection of the short-run aggregate supply curve and the


Definitions:

Price Level

A measure of the average prices of goods and services in an economy at a specific time, often used to assess inflation.

Equilibrium World Price

The price at which the global supply of a good matches the global demand for that good.

Diagram

A simplified drawing or chart used to visually represent information or a system in a clear and concise manner.

Price Level

The mean of current prices for all goods and services produced within the economy.

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