Final answer:
The initial short-run equilibrium at point A in the AD/AS model indicates a situation below full employment and implies stable prices if the output level is far from potential GDP, thus indicating a recessionary state of the economy.
Step-by-step explanation:
The initial short-run equilibrium at point A in the AD/AS model for a hypothetical economy can represent different scenarios depending on its position relative to potential GDP. According to the information given from the figures, if the level of output at equilibrium, represented by point A, is relatively far from the potential GDP line, it signifies the economy is in a state of recession and is well below the full employment level of GDP. This situation is best described by option (b): Below full employment and stable prices.
However, a precise answer would depend on additional details such as the specific position of point A relative to potential GDP, as well as actual movements in the price level in the given scenario. Without precise details of the price movements, we make an educated assumption that prices are stable for this equilibrium based on the absence of information indicating rising or falling prices.