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Course: AP®︎/College Macroeconomics > Unit 3

Lesson 5: Equilibrium in the AD-AS Model

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Equilibrium in the AD-AS model

Google Classroom

The graph shown here illustrates the current status of the economy in Verminville.

Based on this graph, which of the following is true about Verminville?

(Choice A)
The actual unemployment rate equals the natural rate of unemployment
(Choice B)
The economy is in short-run equilibrium, but not in long-run equilibrium
(Choice C)
The economy is at a peak in its business cycle
(Choice D)
The current unemployment rate is lower than the natural rate of unemployment
(Choice E)
The country has cyclical unemployment but no structural unemployment