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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
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Macroeconomic equilibrium

Macroeconomic equilibrium

AD/AS diagram showing equilibrium output, price level and full-employment output

Macroeconomic equilibrium occurs where aggregate demand equals aggregate supply. At this single intersection, planned expenditure matches planned production, so the economy's equilibrium real output and average price level are determined together.

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.