Equilibrium occurs when the aggregate demand curve intersects the aggregate supply curve.
This macro equilibrium is associated with a particular price level and level of GDP that equals,exceeds,or falls short of full-employment output.

Question

Quizplus · Accepted Answer

This statement is true. Equilibrium in the macroeconomy occurs when aggregate demand intersects aggregate supply, and this intersection corresponds to a specific price level and level of GDP. Depending on the exact location of the equilibrium point, the macroeconomy can be producing at full employment output, below full employment output, or above full employment output.

Equilibrium Occurs When the Aggregate Demand Curve Intersects the Aggregate