In macroeconomics, _____________________ denotes the relationship between the total quantity of goods and services and the price level for output.

A) macroeconomic equilibrium

B) aggregate supply (AS)

C) aggregate demand (AD)

D) potential GDP

answer

watching

454

views

For unlimited access to Homework Help, a Homework+ subscription is required.

You have 0 free answers left.
Get unlimited access to 3.8 million step-by-step answers.

Already have an account? Log in

Kristelle BalandoLv10

20 Sep 2020

Unlock all answers

Get 1 free homework help answer.

Already have an account? Log in

What is aggregate demand?

Aggregate Demand refers to the total expenditure on domestic goods and services within an economy. The Aggregate Demand (AD) thus represents the relationship between the total quantity of output demanded in the economy and the overall price level. Like the basic demand curve, the AD curve also slopes downward to reflect the inverse relationship between aggregate price and aggregate quantity demanded.

Long-run macroeconomic equilibrium occurs when:

A. aggregate demand equals short-run aggregate supply.

B. aggregate demand equals short-run aggregate supply, and they intersect at a point on the long-run supply curve.

C. unemployment equals zero.

D. output is above potential GDP.