The equilibrium level of aggregate output is determined in ?
Correct answer: B. the goods market
- A. the goods and labor markets.
- B. the goods market
- C. the money markets
- D. the money and labor market
Explanation
The goods market determines equilibrium output where planned expenditure equals actual output. The money market primarily determines the equilibrium interest rate.
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About Macroeconomics
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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