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If the intersection of the short-run aggregate supply and aggregate demand curves is to the right...

If the intersection of the short-run aggregate supply and aggregate demand curves is to the right of the long-run aggregate supply curve, then the economy is

Group of answer choices

in a recession

operating at more than full employment

at full employment

operating at less than full employment

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Answer #1

Answer is B. Operating at more than full employment.

Because full employment occurs at long run aggregate supply and to right of this there is more than full employment.

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