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At the Intersection of the Aggregate Supply and Aggregate Demand

Question 31

Multiple Choice

At the intersection of the aggregate supply and aggregate demand curves, the economy is in:


A) short-run equilibrium but not necessarily at potential output.
B) at potential output but not necessarily short-run equilibrium.
C) in short-run equilibrium at potential output.
D) neither short-run equilibrium nor at potential output.

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