The output level at which the aggregate demand curve intersects the aggregate supply is always the level at which
A)Saving is zero.
B)Macro equilibrium is achieved.
C)Full employment is sustainable by the economy.
D)Micro equilibrium is achieveD.At macro equilibrium spending is equal to total output.

Question

Quizplus · Accepted Answer

The point at which the aggregate demand curve intersects the aggregate supply curve indicates the macro equilibrium point where the level of spending in the economy equals the total output level. This point represents a balance between the goods and services produced in the economy and the demand for those goods and services. Therefore, option B that macro equilibrium is achieved is the correct choice.

The Output Level at Which the Aggregate Demand Curve Intersects