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At the Intersection of the Short-Run Aggregate Supply, Aggregate Demand

Question 76

Multiple Choice

At the intersection of the short-run aggregate supply, aggregate demand, and the potential output line economy is in:


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

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