Equilibrium in the economy means
A)unemployment is zero.
B)quantities demanded and supplied are equal in all markets.
C)prices aren't changing over time.
D)tax revenues equal government spending,so the government has no budget deficit.

Question

Quizplus · Accepted Answer

Equilibrium in the economy means that the quantity demanded is equal to the quantity supplied in all markets. This indicates that there is no excess demand or excess supply, and prices have reached a point where buyers and sellers are satisfied. Unemployment being zero (option A) is not necessarily a requirement for equilibrium, nor is a balanced budget (option D). While prices may be relatively stable in an equilibrium state (option C), this is not the defining characteristic.

Equilibrium in the Economy Means