The equilibrium of aggregate supply and aggregate demand represents:
A)the overall state of the national economy.
B)the total of all goods and services produced.
C)the general price level of the economy.
D)All of these are true.

Question

Quizplus · Accepted Answer

The equilibrium of aggregate supply and aggregate demand represents the overall state of the national economy, as it indicates the level of output and demand in the economy. It also represents the total of all goods and services produced, as the equilibrium represents the point where the amount of goods and services produced equals the amount demanded. Finally, it represents the general price level of the economy, as the equilibrium determines the price level at which goods and services are bought and sold in the economy. Therefore, all of these statements are true, making choice D the correct answer.

The Equilibrium of Aggregate Supply and Aggregate Demand Represents