Question

Where the aggregate demand curve and the​ short-run aggregate supply curve​ intersect, A. structural and frictional unemployment equal zero. B. the economy is in​ short-run macroeconomic equilibrium. C. the​ long-run aggregate supply curve must also intersect at the same point. D. inflation must be increasing

Answer 1

B) The economy is in​ short-run macroeconomic equilibrium.

Step-by-step explanation:

This means that at this point the quantity demanded in the economy equals the quantity supplied thus resulting in a short run equilibrium.

In the short run these equilibrium points are always shifting depending upon the state of the economy. Higher prices would mean a shifted aggregate supply curve thus shifting equilibrium or better economic conditions might mean people want to buy more and thus aggregate demand shifts and thus the equilibrium shifts again.

Where the aggregate demand equals aggregate supply, there is set to be prevailing an equilibrium.

Hope that helps.