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Macroeconomic Equilibrium

Macroeconomic Equilibrium

AD and AS curves intersecting at equilibrium, with equilibrium price level and real GDP marked on the axes

Macroeconomic equilibrium occurs where aggregate demand, AD, equals aggregate supply, AS. At this intersection, firms' planned output matches households', firms' and governments' planned spending.

4.3.11 establishment of equilibrium in the AD/AS model and the determination of the level of real output, the price level and employment Lesson

  1. Intl A Level
  2. /Economics
  3. /4.3.11 establishment of equilibrium in the AD/AS model and the determination of the level of real output, the price level and employment

Step-by-step lessons on CIE Intl A Level Economics 4.3.11 establishment of equilibrium in the AD/AS model and the determination of the level of real output, the price level and employment. Each one builds up to exam-style questions.

Lessons