Multiple Choice
When SRAS and AD intersect at a real output level that is greater than the natural level of real output,is the economy in equilibrium?
A) It is in short-run equilibrium, and real output will tend to fall from its current level as it adjusts to long-run equilibrium.
B) It is in short-run disequilibrium, and real output will tend to rise from its current level as it adjusts to long-run equilibrium.
C) It is in short-run equilibrium, and real output will tend to rise from its current level as it adjusts to long-run equilibrium.
D) It is in short-run disequilibrium, and real output will tend to fall from its current level as it adjusts to long-run equilibrium.
Correct Answer:

Verified
Correct Answer:
Verified
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