The equilibrium GDP is the level of domestic output:
A)where consumption equals saving.
B)where actual investment equals consumption.
C)which is sustainable.
D)where full employment exists.

Question

Quizplus · Accepted Answer

The equilibrium GDP is the level of output where aggregate demand equals aggregate supply, which is sustainable in the long run without leading to inflation or unemployment pressures.

The Equilibrium GDP Is the Level of Domestic Output