Questions: Macroeconomic equilibrium occurs where: aggregate demand intersects with aggregate supply. the price level in the economy is at the lowest possible level. aggregate demand is larger than aggregate supply. the quantity of output that buyers plan to buy is less than the quantity of output produced in the economy.

The answer is aggregate demand intersects with aggregate supply.

This is the correct answer. Macroeconomic equilibrium in the context of the aggregate demand and aggregate supply model occurs where the aggregate demand curve intersects the aggregate supply curve. At this point, the quantity of goods and services demanded equals the quantity supplied, and the economy is in a state of balance.

This is incorrect. The lowest possible price level does not necessarily indicate macroeconomic equilibrium. Equilibrium is determined by the intersection of aggregate demand and aggregate supply, not by the absolute level of prices.

This is incorrect. When aggregate demand is larger than aggregate supply, it leads to a situation known as a demand-pull inflation, where prices tend to rise because demand exceeds supply. This is not an equilibrium state.

This is incorrect. When the quantity of output that buyers plan to buy is less than the quantity produced, it results in excess supply or a surplus, which is not an equilibrium condition.