At the intersection of the aggregate supply and aggregate demand curves,the economy is experiencing:
A) Full employment.
B) Macro equilibrium.
C) Low levels of inflation.
D) Population growth.

Question

Quizplus · Accepted Answer

At the intersection of the aggregate supply and aggregate demand curves, the economy is experiencing macro equilibrium, which means that the quantity of goods and services produced equals the quantity demanded, and the overall price level is stable. This does not necessarily indicate full employment or low levels of inflation, as those are separate concepts. Population growth is not relevant to this intersection point.

At the Intersection of the Aggregate Supply and Aggregate Demand