Exhibit 15.6 -Exhibit 15.6 Depicts the Short-Run and Long-Run Equilibrium in an Long-Run

Multiple Choice

Exhibit 15.6

-Exhibit 15.6 depicts the short-run and long-run equilibrium in an aggregate demand-aggregate supply model. The economy is _____

A) in a long-run equilibrium at the price level P and income level Y.
B) in a short-run equilibrium at the price level P and income level Y.
C) experiencing a contractionary gap at the price level P and income level Y.
D) experiencing an expansionary gap at the price level P" and income level Y'.
E) in a short-run equilibrium at the price level P' and income level Y.