An increase in Total Expenditure and an increase in employment will result when the economy is at macro equilibrium.
A state of the economy known as macroeconomic equilibrium occurs when aggregate supply and demand are equal in size. Price, unemployment, and inflation could all vary if there are changes in either aggregate supply or demand. Macroeconomic equilibrium can be divided into three categories based on SRAS, LRAS, and AD.
For a market to be both efficient and balanced, equilibrium is crucial. A market cannot move away from its equilibrium price and quantity since it is maintaining a balance between the quantities provided and demanded. Assume that full employment prevails in an economy because the macro equilibrium occurs at the potential GDP.
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