If aggregate demand equals output,
A)the economy is in a recession.
B)output will increase.
C)output will fall.
D)the economy is at its equilibrium level.

Question

Quizplus · Accepted Answer

When aggregate demand equals output, it means that the economy is at its equilibrium level, which is the point where output and price level stabilize. This is indicative of the economy operating at full capacity, with no excess or shortage of goods and services.

If Aggregate Demand Equals Output