Macroeconomic equilibrium is best described as a situation in which:
A)the slope of the aggregate demand curve equals the slope of the aggregate supply curve.
B)quantity demanded exceeds quantity supplied.
C)quantity demanded equals quantity supplied at a unique price level.
D)quantity supplied exceeds quantity demanded at a unique price level.
E)quantity supplied equals quantity demanded at a unique price level.

Question

Quizplus · Accepted Answer

Macro equilibrium occurs when the quantity of goods and services supplied by firms equals the quantity demanded by households, businesses, and the government. This equilibrium is represented by the intersection of the aggregate demand (AD) and aggregate supply (AS) curves at a unique price level. Therefore, choice (E) is the correct answer.

Macroeconomic Equilibrium Is Best Described as a Situation in Which