Show transcribed image text 100% (1 rating)1. True: Short run equilibrium is when AD curve interesects the AS curve. Therefore, the equilibrium is in SR equilibrium. The economy is in Long run equilibrium because it’s working on full employment level. And the…View the full answerTranscribed image text: 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 X 100 90 80 AD 70 60 60 65 70 80 95 100 OUTPUT Given the economic conditions depicted by the graph, answer the following questions. True or False: The economy is currently in long-run equilibrium. True False The current level of real GDP is the potential GDP. Now consider the following economic conditions. PRICE LEVEL 75
