Figure 13-4 Shows the Short-Run Macroeconomic Equilibrium of an Economy

Multiple Choice

Figure 13-4 shows the short-run macroeconomic equilibrium of an economy at Point A. In the figure, Point A suggests that:Figure 13-4

A) the economy is running a balance of payment deficit.
B) there is a surplus of money in the economy.
C) the economy is operating at long-run equilibrium.
D) prices are falling in the economy.
E) there is a low level of unemployment in the economy.