When SRAS and AD Intersect at a Real Output Level

Multiple Choice

When SRAS and AD intersect at a real output level that is less 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 rise from its current level as it adjusts to long-run equilibrium.
B) It is in short-run disequilibrium, and real output will tend to fall from its current level as it adjusts to long-run equilibrium.
C) It is in short-run equilibrium, and real output will tend to fall from its current level as it adjusts to long-run equilibrium.
D) It is in short-run disequilibrium, and real output will tend to rise from its current level as it adjusts to long-run equilibrium.