When Does Macroeconomic Equilibrium Occur

question 150

Multiple Choice

When does macroeconomic equilibrium occur?

• A)When aggregate supply equals long-run aggregate supply.
• B)When the aggregate demand curve intersects the aggregate supply curve.
• C)When the aggregate demand curve intersects the LAS curve.
• D)When full employment occurs.

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Definitions:

Business Inputs

Goods or services that are used in the production process of other goods or services, including raw materials, components, and labour.

Command Economy

An economic system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which goods will be offered for sale.

Political Hierarchy

A system of organization within a political entity or government where individuals or groups are ranked one above the other based on authority or power.

Soviet Union

A former federation of Communist republics consisting of Russia and several other states that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).