Question

At the equilibrium point, which of the following conditions holds?

विकल्प

• Output = Aggregate Demand

• Output < Aggregate Demand

• Aggregate Demand = Zero

• Output > Aggregate Demand

Answer 1

At the point where the AD curve cuts the 45° line, the level of output produced equals aggregate demand. This equality ensures that whatever firms produce is exactly purchased, leaving no tendency for output to change.