Macroeconomic equilibrium can occur at any point on the 45 degree line.

Name: Macroeconomic equilibrium can occur at any point on the 45 degree line.
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Question

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The 45 degree line represents the equality between output and expenditure, and macroeconomic equilibrium occurs when aggregate expenditure equals aggregate output. Therefore, any point of intersection between the 45 degree line and the aggregate expenditure curve represents a point of macroeconomic equilibrium.

Macroeconomic Equilibrium Can Occur at Any Point on the 45