Exhibit 15.5 -Exhibit 15.5 Depicts the Aggregate Demand Curve and the Short-Run

Multiple Choice

Exhibit 15.5

-Exhibit 15.5 depicts the aggregate demand curve and the short-run aggregate supply curve of an economy. In this figure, short-run equilibrium occurs at _____

A) point b, where actual output exceeds potential output.
B) point a, where actual output exceeds potential output.
C) point c, where the actual price level exceeds the expected price level.
D) point c, where the actual price level is less than the expected price level.
E) point b, where the actual price level exceeds the expected price level.