True or False QuestionTrue or false: If the price level is below macroeconomic equilibrium, there will be a surplus of real GDP.True false question.TrueFalse
Question
Solution 1
Analysis
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Understanding Macroeconomic Equilibrium: Macroeconomic equilibrium occurs when the aggregate supply equals aggregate demand. At this point, the economy is producing at its potential output, and there are no forces creating pressure for prices to either rise or fall.
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