Which of the following best describes the short-run macroequilibrium?

A. The point where short-run aggregate supply intersects long-run aggregate supply.
B. The point where a microeconomic demand intersects macroeconomic aggregate demand.
C. The point where short-run aggregate supply intersects aggregate demand.
D. The point where a microeconomic supply intersects macroeconomic aggregate supply.



Answer :

Final answer:

Short-run macroequilibrium is achieved at the intersection of aggregate demand and short-run aggregate supply curves, determining real GDP and price level. Long-run equilibrium occurs when aggregate demand intersects long-run aggregate supply at potential output level.


Explanation:

Short-run macroequilibrium in macroeconomics occurs at the intersection of the aggregate demand curve with the short-run aggregate supply curve. This point determines the equilibrium real GDP and price level in the short run. In contrast, long-run equilibrium happens when the aggregate demand curve intersects the long-run aggregate supply curve at the economy's potential output level.


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