What does macroeconomic equilibrium imply?
A)The point where Real GDP is at capacity.
B)The point where the quantity of Real GDP demanded equals the quantity of Real GDP supplied.
C)It is where the aggregate demand curve intersects the LAS curve.
D)It is possible only at various price levels.
E)Full employment GDP.

Question

Quizplus · Accepted Answer

Macroeconomic equilibrium refers to the point where the quantity of real GDP demanded by households, firms, and the government equals the quantity of real GDP supplied by firms. At this point, there is no excess demand or supply in the macroeconomy, and the economy is in balance.

What Does Macroeconomic Equilibrium Imply