Macroeconomic equilibrium occurs where:
A)aggregate demand intersects with aggregate supply.
B)the price level in the economy is at the lowest possible level.
C)aggregate demand is larger than aggregate supply.
D)the quantity of output that buyers plan to buy is less than the quantity of output produced in the economy.

Question

Quizplus · Accepted Answer

Macroeconomic equilibrium occurs at the point where aggregate demand intersects with aggregate supply, meaning that the quantity of output demanded is equal to the quantity of output supplied. This is where the economy is operating at its potential and there is no excess demand or excess supply, leading to stable prices and economic growth. B, C and D are incorrect as they do not accurately describe macroeconomic equilibrium.

Macroeconomic Equilibrium Occurs Where