Macroeconomic equilibrium occurs at a point where:Question 38Select one:a.Aggregate Demand is more than Aggregate Supplyb.Aggregate Demand is increasing and Aggregate Supply is decreasing.c.Aggregate demand is decreasing and Aggregate Supply is increasing.d.Aggregate Demand is less than Aggregate Supply.e.Aggregate Demand is equal to Aggregate Supply.
Question
Macroeconomic equilibrium occurs at a point where:Question 38Select one:a.Aggregate Demand is more than Aggregate Supplyb.Aggregate Demand is increasing and Aggregate Supply is decreasing.c.Aggregate demand is decreasing and Aggregate Supply is increasing.d.Aggregate Demand is less than Aggregate Supply.e.Aggregate Demand is equal to Aggregate Supply.
Solution
Macroeconomic equilibrium occurs at a point where:
e. Aggregate Demand is equal to Aggregate Supply.
This is because in macroeconomics, equilibrium is achieved when the quantity of goods and services demanded by consumers (aggregate demand) equals the quantity of goods and services that firms plan to produce (aggregate supply). This balance ensures that all goods and services produced are consumed, and there is no surplus or shortage in the market.
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