Question

Help Sav Practice: Public Finance and Aggregate Demand an. 34 Use the following graph to answer the next question AS poinns AD Q02Q3 Real Domestic Output, GDP The short-run equilibrium for this economy is at < Prev 34 of 50 Score answer > Type here to search ace

Answer 1

Answer 34

the correct answer is (b) point g

Short run equilibrium in the economy occurs at a point where Aggregate Demand (AD) curve and Short run aggregate Supply(AS) intersect. We can see from the above graph that AS and AD intersect at point g. Hence Short riun equilibrium occurs at point g

Hence the correct answer is (b) point g