In the self-correcting AD-AS model, the economy's short-run equilibrium position is indicated by the intersection of which two curves?
A. short-run aggregate supply and long-run aggregate supply
B. short-run aggregate supply and aggregate demand
C. long-run aggregate supply and aggregate demand
D. long-run aggregate demand and short-run personal consumption expenditures curve
Answer: B
You might also like to view...
Suppose the market-clearing price of milk is $3.00 per gallon, but the dairy industry persuades the government to establish a legally-mandated price support at $4.00 per gallon. The newly legislated price tends to
A) increase the supply of milk. B) reduce the demand for milk. C) increase the quantity supplied of milk. D) increase the quantity demanded of milk.
Economies of scale may be a barrier to entry in a situation in which
A) only small-scale production can lower the per-unit cost of production. B) only small-scale production can meet the constantly changing market demand. C) only large-scale production can lower the per-unit cost of production. D) large-scale production is inefficient.