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Theme 2: The UK economy: performance and policies
National income
Equilibrium levels of real national output
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Created by
Lucas B
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Cards (3)
When is the equilibrium reached in macroeconomics?
When the
AD
curve intersects with the
AS
curve
What would happen if the price level was above the equilibrium point?
The price level would
decrease
, because AS would be
greater
than AD
What would happen if the price level was below the equilibrium point?
The price level would
increase
, because AS would be
lesser
than AD