Question

For the aggregate demand, short-run aggregate supply, and long-run aggregate supply to intersect at the same place, the economy would have to be operating at what point?

Answer 1

The economy would have to be operating at the full employment point.

Step-by-step explanation:

The economy would have to be operating at the full employment point. This is the point where the aggregate demand (AD) curve intersects with the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. At this point, the economy is producing at its maximum potential output and there is no cyclical unemployment.