2.4.3 - Equilibrium levels of real national output

Question 1

Define Macroeconomic Equilibrium

Answer 1

. Occurs where aggregate demand equals aggregate supply

Question 2

Name two types of equilibrium

Answer 2

. Short Run Equilibrium
. Long Run Equilibrium

• Watch BOTH Econplusdal videos

Question 3

What does YFE mean in diagrams

Answer 3

• Full employment of factors of production (labour, land, etc.)

. It is ONLY used for LRAS curves