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

• A. 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.
• B. Short run equilibrium occurs where aggregate demand intersects with long run aggregate supply, while long run equilibrium occurs where all three curves intersect.
• C. Short run equilibrium occurs where aggregate demand intersects with short run aggregate supply, while long run equilibrium occurs where all three curves intersect.
• D. 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.

Answer: (C)