In terms of aggregate supply and aggregate demand, the equilibrium price level is Blank______.

Question

Multiple choice question.

at any point below the intersection of the aggregate demand and aggregate supply curves

at any point above the intersection of the aggregate demand and aggregate supply curves

at any point directly on either the aggregate demand or aggregate supply curve

at the point of intersection of the aggregate demand and aggregate supply curves

Answer 1

The correct answer is:

at the point of intersection of the aggregate demand and aggregate supply curves.