Question

Short-run macroeconomic equilibrium is when:

a) Aggregate supply equals aggregate demand
b) Investment equals savings
c) Production equals consumption
d) Total exports equal total imports

Answer 1

Short-run macroeconomic equilibrium is when aggregate supply equals aggregate demand.

Step-by-step explanation:

Short-run macroeconomic equilibrium is when aggregate supply equals aggregate demand. In other words, it occurs when the total amount of goods and services that producers are willing and able to sell matches the total amount that consumers are willing and able to buy at a particular price level.

For example, if the aggregate supply in an economy is $500 billion and the aggregate demand is also $500 billion, then the economy is in short-run macroeconomic equilibrium.

The primary topic of this question is short-run macroeconomic equilibrium.