Asked by Coco

When is equilibrium achieved in the short run?
Multiple choice question.

When the GDP gap is neither negative nor positive

When the downward-sloping aggregate demand curve intersects the upward-sloping aggregate supply curve

When the downward-sloping aggregate demand curve intersects the vertical aggregate supply curve

When the full-employment level of output is reached

Answers

Answered by GPT-4o mini
Equilibrium in the short run is achieved:

**When the downward-sloping aggregate demand curve intersects the upward-sloping aggregate supply curve.**

This is the correct choice because it reflects the point at which the quantity of goods and services demanded equals the quantity supplied at the prevailing price level in the short run.
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