The equilibrium price level and equilibrium level of real GDP occur at the intersection of the
aggregate demand curve and the aggregate supply curve.

Question

Quizplus · Accepted Answer

This statement is correct. The equilibrium price level and equilibrium level of real GDP are determined by the intersection of the aggregate demand and aggregate supply curves. At this point, there is no excess supply or excess demand in the economy, and the market is in equilibrium.

The Equilibrium Price Level and Equilibrium Level of Real GDP