When does macroeconomic equilibrium occur?
A)When exports equal imports.
B)When the aggregate supply equals the long-run Aggregate Supply.
C)When the aggregate quantity demanded is equal to the aggregate quantity supplied.
D)When the aggregate demand equals the long-run Aggregate Supply.

Question

Quizplus · Accepted Answer

Macroeconomic equilibrium occurs when the aggregate quantity demanded (AD) is equal to the aggregate quantity supplied (AS). This means that there is no excess demand or supply in the economy, leading to stable prices and output levels. Options A and D refer to external balances and do not necessarily indicate internal equilibrium. Option B refers to potential output in the long run and not equilibrium.

When Does Macroeconomic Equilibrium Occur