Macroeconomic equilibrium
What Macroeconomic equilibrium means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Macroeconomic equilibrium
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Reference: Pearson Edexcel
The point identified on an AD/AS diagram where the new equilibrium shows the resulting changes in the general price level and real output.
The point where aggregate demand intersects the long-run aggregate supply curve at a specific price level and real GDP.
The point affected when a rightward shift in long-run aggregate supply is linked to supply-side policies.
The state that occurs when total injections into the circular flow equal total withdrawals from it.
Topics that use Macroeconomic equilibrium
- Circular flow of income, expenditure and output (Pearson Edexcel A-Level)
- Demand-side policies (Pearson Edexcel A-Level)
- Supply-side policies (Pearson Edexcel A-Level)
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Aggregate demand
- Demand-pull inflation
- Factors of production
- Investment
- Productive capacity
- Aggregate Demand (AD)
- Cost-push inflation
- Costs of production
Using Macroeconomic equilibrium in the exam
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