Question

The short-run aggregate supply curve intersects the long-run aggregate supply curve at

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.

Answer 1

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.**