Final answer:
Equilibrium in the Aggregate Demand-Aggregate Supply (AD-AS) model is most accurately described as occurring at the intersection of the AD and AS curves, which determines the equilibrium output and price level in the economy.
Step-by-step explanation:
The Aggregate Demand-Aggregate Supply (AD-AS) model most accurately reflects the description of equilibrium at the intersection of AD and AS curves. In the AD/AS model, equilibrium is found where the Aggregate Demand curve intersects with the Aggregate Supply curve, showing the equilibrium output and price level in the economy. Movements of either AD or AS result in a different equilibrium output and price level. The model incorporates various macroeconomic factors such as long-term economic growth, unemployment, and inflation, by showing how these factors shift the AD and AS curves.
Therefore, The AD-AS model most accurately is: (a) Equilibrium at the intersection of AD and AS curves. Choices (b) Equilibrium when AD > AS, (c) Equilibrium when AS > AD, and (d) Equilibrium determined by fiscal policy, do not accurately describe the equilibrium in the AD-AS model.