When SRAS and AD Intersect at the Natural Level of Real

Multiple Choice

When SRAS and AD intersect at the natural level of real output,is the economy in equilibrium?

A) It is not necessarily in either short-run equilibrium or in long-run equilibrium.
B) It is in short-run equilibrium and long-run equilibrium.
C) It is in short-run equilibrium but not necessarily in long-run equilibrium.
D) It is in long-run equilibrium but not necessarily in long-run equilibrium.ANS B