Short-run macroeconomic equilibrium occurs when the quantity demanded equals the quantity supplied at the point of intersection.
a) Long run macroeconomic equilibrium occurs when the economy is operating at its full potential and there is no cyclical unemployment.
b) Macroeconomic equilibrium can be achieved through the use of fiscal and monetary policy to stabilize the economy.
c) If the quantity demanded exceeds the quantity supplied, there will be upward pressure on prices, leading to inflation.
d) An increase in the quantity supplied relative to the quantity demanded will lead to downward pressure on prices, potentially causing deflation.