Question

Short-run macroeconomic equilibrium occurs when:

 

A. aggregate demand and short-run aggregate supply intersect.

 

B. the equilibrium lies on the long-run supply curve.

 

C. the price level is constant in the short run.

 

D. The two criteria – that aggregate demand and short-run aggregate supply intersect, and that the equilibrium lies on the long-run supply curve – must both be satisfied