-Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label RGDP* for the macroeconomic equilibrium level of Real Gross Domestic Product?
A)Box 1
B)Box 2
C)Box 5
D)Box 6

Question

-Referring to the Aggregate Demand - Aggregate Supply diagram in Figure 8.1, which box should be filled with the label RGDP* for the macroeconomic equilibrium level of Real Gross Domestic Product? 
A)Box 1 
B)Box 2 
C)Box 5 
D)Box 6

Quizplus · Accepted Answer

The macroeconomic equilibrium level of Real Gross Domestic Product (RGDP*) is found where the Aggregate Demand (AD) curve intersects the Aggregate Supply (AS) curve. This point represents the equilibrium output level, which is typically depicted in the middle of the diagram, corresponding to Box 5 in a standard AD-AS model layout.

-Referring to the Aggregate Demand - Aggregate Supply Diagram in Figure