-Refer to the above figure. The equilibrium level of real GDP occurs
A) at point A.
B) to the right of point A.
C) to the left of point A.
D) at the undetermined point on the graph depending upon the level of investment.

Question

-Refer to the above figure. The equilibrium level of real GDP occurs
A) at point A. 
B) to the right of point A. 
C) to the left of point A. 
D) at the undetermined point on the graph depending upon the level of investment.

Quizplus · Accepted Answer

Equilibrium level of real GDP occurs where the aggregate demand equals aggregate supply, typically represented by the intersection of the demand and supply curves. Point A, being at this intersection, indicates the equilibrium level.

-Refer to the Above Figure