At the intersection of AD and AS equilibrium is achieved in ?
Correct answer: D. all of these
- A. the goods market
- B. the money markets
- C. the labor markets
- D. all of these
Explanation
The AD-AS intersection identifies the economy-wide equilibrium, combining equilibrium conditions in output demand, money-market determination of interest rates, and factor-market production. Hence the intended answer is all of these.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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