QUIZECO

What is a macroeconomic equilibrium?

• It is the same as normal market equilibrium.

• Macroeconomic equilibrium - the quantity of real GDP demanded equals the quantity of real GDP supplied at the point of intersection of the AD curve and the AS curve.

• Macroeconomic equilibrium - the quantity of real GDP demanded is lower than the quantity of real GDP supplied.

• Macroeconomic equilibrium - the quantity of nominal GDP demanded is higher than the quantity of real GDP supplied.

3. What is the long-run macroeconomic equilibrium?

• The long-run equilibrium is where aggregate demand is equal to long-run aggregate supply.

• The long-run equilibrium is where aggregate demand is equal to short-run aggregate supply.

• The short-run equilibrium is where aggregate demand is equal to short-run aggregate supply.

• The short-run equilibrium is where aggregate demand is equal to long-run aggregate supply.

• Neo-classical

• Keynesian

According to the Keynesian perspective an economy cannot operate under the full-employment level of national income

• true

• false

Draw the short run macroeconomic equilibrium diagram.