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Introduction to Macroeconomics

Question 5 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Aggregate supply and aggregate demand are similar to supply and demand in that prices must reach to benefit both producers and consumers.

Answer
A
equilibrium
B
disequilibrium

Explanation

The price must reach equilibrium, where the quantity producers are willing to supply matches the quantity consumers are willing to demand. At that price, both sides can make mutually beneficial exchanges. Disequilibrium means supply and demand do not match.

AI-written and checked against the verified answer.

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