The short-run aggregate supply curve intersects the long-run aggregate supply curve at the potential level of real output.
So, the correct answer is: the potential level of real output.
Multiple Choice
a constant price level.
the potential level of real output.
the equilibrium level of aggregate demand.
the point where real GDP equals nominal GDP.
1 answer
The short-run aggregate supply curve intersects the long-run aggregate supply curve at the potential level of real output.
So, the correct answer is: the potential level of real output.