The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned
A) real expenditures equal actual nominal GDP.
B) real expenditures equal total planned production.
C) export spending equals total planned import spending.
D) government spending equals total planned tax revenues.

Question

Quizplus · Accepted Answer

The intersection of aggregate demand and long-run aggregate supply identifies the price level at which total planned real expenditures equal total planned production, indicating an equilibrium state in the economy where aggregate demand equals aggregate supply.

The Intersection of Aggregate Demand and Long-Run Aggregate Supply Identify