4. Short-run equilibrium and long-run equilibrium

The following graph shows the economic conditions of a hypothetical economy.

LRAS 140 130 SRAS 120 110 100 PRICE LEVEL 90 80 AD T0 60 60 65 i0 i5 80 85 90 95 100 OUTPUT Given the economic conditions depicted by the graph, answer the foiiowing questions. True or False: The economy is currently in long-run equilibrium. 0 True 0 False The current unemployment rate is less than V the natural rate of unemployment. Now consider the following economic conditions. LRAS 140 130 SRAS 120 110 PRICE LEVEL 100 90 20 AD 70 60 60 65 70 75 80 85 90 95 100 OUTPUT Given the economic conditions depicted by the graph, answer the following questions. True or False: The economy is currently in short-run equilibrium. O TrueNow consider the following economic conditions. ? LRAS 140 130 SRAS 120 110 100 PRICE LEVEL 90 80 AD 70 60 60 65 70 75 80 85 90 95 100 OUTPUT Given the economic conditions depicted by the graph, answer the following questions. True or False: The economy is currently in short-run equilibrium. O True