Macroeconomic Equilibrium

We now see how aggregate output and the price level adjust or equilateral to bring aggregate supply and aggregate demand into balance. That is. we use the and AD concepts to see how of price and quantity are determined 01′ to find the P and Q that . satisfy the buyers and sellers all taken together, For the AS and curves shown in Figure 20-6, the overall economy is in equilibrium at point i. Only at that point. where the level of output is Q = 3000 and P = 150, are spenders and sellers satisfied. Only at point E are remainders willing to buy exactly the “amount that businesses are willing to produce and sell.

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