Which of the following best describes the equilibrium of aggregate supply and aggregate demand?
A) a situation in which the slope of aggregate demand equals the slope of aggregate supply
B) a situation in which quantity demanded exceeds quantity supplied
C) a situation in which quantity demanded equals quantity supplied at a unique price level
D) a situation in which quantity supplied exceeds quantity demanded at a unique price level

Question

Which of the following best describes the equilibrium of aggregate supply and aggregate demand?  
A) a situation in which the slope of aggregate demand equals the slope of aggregate supply 
B) a situation in which quantity demanded exceeds quantity supplied 
C) a situation in which quantity demanded equals quantity supplied at a unique price level 
D) a situation in which quantity supplied exceeds quantity demanded at a unique price level

Quizplus · Accepted Answer

Equilibrium of aggregate supply and aggregate demand occurs at a unique price level where the quantity demanded equals the quantity supplied. This means that there is no excess supply or demand in the economy, and the economy is producing at its optimal level.

Which of the Following Best Describes the Equilibrium of Aggregate