Learning Materials
Features
Discover
Is it possible for all the products and services an economy produces to be in demand? What if the aggregate supply is higher than the aggregate demand? How do we find out if the aggregate demand is met by an equal aggregate supply? This is where macroeconomic equilibrium comes into the picture.
Millions of flashcards designed to help you ace your studies
Sign up for free
Achieve better grades quicker with Premium
Geld-zurück-Garantie, wenn du durch die Prüfung fällst
Review generated flashcards
Start learning or create your own AI flashcards
Team Macroeconomic Equilibrium Teachers
Sign up for free to gain access to all our flashcards.
What will increase macroeconomic equilibrium prices?
A negative supply shock when the aggregate supply reduces over the short run and the SRAS curve shifts to the left leading to the increase in price level and decrease in the supply in the economy.
What is macroeconomic equilibrium?
Macroeconomic equilibrium occurs at the point where the aggregate demand meets the aggregate supply.
How do you calculate macroeconomic equilibrium?
Macroeconomic equilibrium equations can be explained as AD = AS.
However, if we have to understand equations in algebraic format, we need to understand the factors that help to form an equilibrium.
Y = Aggregate income = Macroeconomic equilibrium
C = consumption
I = investment
G = government expenditure
Therefore, the equation will be
Y = C + I + G
What is a macroeconomic equilibrium example?
The whole concept of macroeconomic equilibrium can be understood with the example of iPhones.
Initially, when Apple launches a new series, say iPhone X, the demand is huge and supply is not equal to demand.
This creates a positive demand shock for the iPhone X, so the supply needs to increase to meet the demand to create a short-run macroeconomic equilibrium.
However, as time passes, Apple is able to meet the demand for the iPhone X series over the long-run, which eventually creates the long-run macroeconomic equilibrium.
Name three types of macroeconomics equilibrium.
At StudySmarter, we have created a learning platform that serves millions of students. Meet the people who work hard to deliver fact based content as well as making sure it is verified.
Lily Hulatt is a Digital Content Specialist with over three years of experience in content strategy and curriculum design. She gained her PhD in English Literature from Durham University in 2022, taught in Durham University’s English Studies Department, and has contributed to a number of publications. Lily specialises in English Literature, English Language, History, and Philosophy.
Get to know Lily
Gabriel Freitas is an AI Engineer with a solid experience in software development, machine learning algorithms, and generative AI, including large language models’ (LLMs) applications. Graduated in Electrical Engineering at the University of São Paulo, he is currently pursuing an MSc in Computer Engineering at the University of Campinas, specializing in machine learning topics. Gabriel has a strong background in software engineering and has worked on projects involving computer vision, embedded AI, and LLM applications.
Get to know Gabriel
Explanations 
Flashcards 
StudySmarter AI 
Notes 
Study Plans 
Study Sets 
Exams 
Find a job 
Student Deals 
Magazine 
Mobile App