Question

_____________ is the point at which the quantity of aggregate goods and services demanded equals the quantity produced.

A. Supply
B. Input price
C. Equilibrium
D. Full employment output

Answer 1

The correct answer is C. Equilibrium is the point at which the quantity of aggregate goods and services demanded equals the quantity produced.

Step-by-step explanation:

Economic equilibrium occurs when there is equivalence between supply and demand for that good, that is, when the quantities offered are equal to the quantities demanded for that good. The price for which the quantities offered will be equal to the quantities demanded is called the equilibrium price; the equilibrium quantity is that which equals demand and supply. Equilibrium is a hypothetical condition in which market forces are equal and, in the absence of exogenous factors, micro and macroeconomic variables remain stable.

Answer 2

Equilibrium is the point at which the quantity of aggregated goods and services demanded is equal to the quantity produced. In the state of equilibrium, there is balance and harmony between the supply and demand