Macroeconomic equilibrium
What Macroeconomic equilibrium means in Economics A-Level, as defined for AQA.
Definitions of Macroeconomic equilibrium
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Macroeconomic equilibrium in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The point shown in AD/AS diagrams by the original equilibrium price level and real national output, and by the new equilibrium after a shift.
The level of income where injections equal withdrawals, or aggregate demand equals aggregate supply, keeping the circulating money constant.
The point where aggregate demand intersects aggregate supply, determining the general price level and real national output.
A position where an economy can settle below full employment, as the Keynesian model demonstrates.
Occurs when total injections equal total withdrawals, that is I + G + X = S + T + M.
The level of national income at which total injections equal total withdrawals.
Topics that use Macroeconomic equilibrium
- Aggregate demand and aggregate supply analysis (AQA A-Level)
- Determinants of long-run aggregate supply (AQA A-Level)
- The circular flow of income (AQA A-Level)
Related terms
- Economic growth
- Negative output gap
- Aggregate demand
- Aggregate demand components
- Aggregate supply
- Banking system
- Capital accumulation
- Circular flow of income
Using Macroeconomic equilibrium in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge