The intersection of the aggregate demand and the aggregate supply curve defines the equilibrium level of _____ and the price level.
A)real interest rate
B)nominal interest rate
C)nominal GDP
D)real GDP
E)unemployment

Question

Quizplus · Accepted Answer

The intersection of the AD and AS curve indicates the level of real GDP that is being demanded and supplied in the economy, which represents the equilibrium level of output. The price level is also determined at this intersection point. Therefore, the correct answer is D, real GDP.

The Intersection of the Aggregate Demand and the Aggregate Supply