When the Aggregate Demand Curve and the Short-Run Aggregate Supply

question 43

Multiple Choice

When the aggregate demand curve and the short-run aggregate supply curve intersect

• A)the long-run aggregate supply curve must also intersect at the same point.
• B)inflation must be increasing.
• C)structural and frictional unemployment equal zero.
• D)the economy is in short-run macroeconomic equilibrium.

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Definitions:

Import Consumers

Individuals or entities that bring goods or services into a country from abroad for domestic consumption.

More Expensive

Describing the condition of having a higher price compared to other options or the past pricing of the same item.

Weaker Peso

A situation where the currency of Mexico, the peso, decreases in value compared to other currencies, affecting international trade and economic conditions within the country.

US Exports

Goods, services, or commodities that are sent from the United States to other countries for sale or trade.