Author Question: Long-run equilibrium will occur at the price level at which A) the aggregate demand and long-run ... (Read 144 times)

tth · **on:** Jun 30, 2018

Long-run equilibrium will occur at the price level at which

A) the aggregate demand and long-run aggregate supply curves intersect.
B) the short-run aggregate supply and long-run aggregate supply curves intersect.
C) the long-run aggregate demand and short-run aggregate supply curves intersect.
D) the aggregate demand and short-run aggregate supply curves intersect.

Question 2

If the price level kept increasing, the short-run aggregate supply (SRAS) curve would get steeper because

A) all the unemployed would eventually be hired.
B) the long-run aggregate supply curve is horizontal.
C) there are limits to how long workers can work long hours and capital can go without proper maintenance.
D) the rate at which capacity can be expanded increases indefinitely.