how-does-short-run-equilibrium-differ-from-long-run-equilibrium-in-the-ad-as-mod

Question

How does short run equilibrium differ from long run equilibrium in the AD-AS model?

Accepted Answer

Short run equilibrium occurs where aggregate demand intersects with short run aggregate supply, while long run equilibrium occurs where all three curves intersect.

Answer

Short run equilibrium occurs where short run aggregate supply intersects with long run aggregate supply, while long run equilibrium occurs where all three curves intersect.

Answer

Short run equilibrium occurs where aggregate demand intersects with long run aggregate supply, while long run equilibrium occurs where all three curves intersect.

Answer

Short run equilibrium occurs where aggregate demand intersects with both short run and long run aggregate supply, while long run equilibrium occurs where all three curves intersect.