Macroeconomic equilibrium occurs at the intersection of the aggregate demand and aggregate supply curves.

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This is a fundamental concept in macroeconomics, and it states that the equilibrium level of output and price level occurs where aggregate demand (in the form of consumption, investment, government spending, and net exports) equals aggregate supply (which depends on factors such as technology, resource availability, and production costs). At this point, there is no excess demand or supply, and the economy is operating at its potential level of output.

Macroeconomic Equilibrium Occurs at the Intersection of the Aggregate Demand