Macroeconomic equilibrium occurs when
A)there is no inflation.
B)the economy is fully employed.
C)the price level equals the potential price level.
D)the aggregate quantity demanded is equal to the aggregate quantity supplied.
E)real GDP is equal to potential GDP.

Question

Quizplus · Accepted Answer

Macroeconomic equilibrium occurs when the aggregate quantity demanded equals the aggregate quantity supplied, meaning the overall economy is balanced with no excess supply or demand.

Macroeconomic Equilibrium Occurs When