The equilibrium price level and level of real output occur where
A) real output is at its highest possible level.
B) exports equal imports.
C) the price level is at its lowest level.
D) the aggregate demand and supply curves intersect.

Question

Quizplus · Accepted Answer

The equilibrium price level and level of real output occur where the aggregate demand and supply curves intersect, indicating that the quantity demanded by buyers equals the quantity supplied by sellers, resulting in a stable price level and output level.

The Equilibrium Price Level and Level of Real Output Occur