To determine the price level and aggregate output, the aggregate demand and aggregate supply must
A) be considered separately.
B) be disregarded.
C) be considered as a multiplier.
D) intersect.

Question

Quizplus · Accepted Answer

The intersection of aggregate demand and aggregate supply determines the equilibrium price level and aggregate output. At this point, the quantity demanded equals the quantity supplied, resulting in a stable market equilibrium. Therefore, the correct choice is D- intersect.

To Determine the Price Level and Aggregate Output, the Aggregate