Macroeconomic equilibrium occurs when

A) the quantity of output demanded equals the quantity of output supplied.
B) the price level is increasing.
C) the price level is decreasing.
D) there is very low cyclical unemployment.

Macroeconomic Equilibrium

A state in which aggregate supply equals aggregate demand, meaning the economy is at a balance between the total quantity of goods supplied and the total quantity of goods demanded.

Output Demanded

Refers to the quantity of goods or services that consumers and other economic agents are willing to buy at a given price.

Output Supplied

Refers to the quantity of goods or services that producers are willing and able to sell at a given price level within a specified period.