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)price 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, which represents the point at which the market is in balance and there is no excess supply or demand. Choices A, B, and C are not accurate descriptions of the equilibrium point.

The Equilibrium Price Level and Level of Real Output Occur