UNIT 03 / NATIONAL INCOME AND PRICE DETERMINATION

Equilibrium in the AD–AS Model3.5 test

100 questions with explanations after each answer.

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QUESTION 01 / 100Easy

In the aggregate demand–aggregate supply (AD-AS) model, short-run equilibrium is defined as

Select one answerAThe point at which real GDP equals potential GDP and unemployment equals the natural rateBThe intersection of AD and SRAS, where output demanded equals output suppliedCThe point at which the SRAS curve intersects the LRAS curveDThe point at which the price level equals 100 (the index base year)EThe point at which aggregate demand equals zero and the price level is stable

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1 of 100

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Question 1