Which of the following accurately describes the state of the macro-economy if it is operating at the intersection of the AD1 and SRAS2 curves?
a. It is operating at full employment and is in both a short-run and long-run equilibrium
B It is operating above full employment and is in both a shart-run and long-run equilibrium.
C It is operating below full employment and is in a short-run but not a long-run equilibrium.
D It is not in short-run equilibrium because output is below full employment
E It is in long run equilibrium because the economy is at fullemployment