Section 5
The Aggregate Demand-Supply Model
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![Thumbnail](../../../../../../figures.boundless-cdn.com/21247/raw/supply-demand-equilibrium.jpg)
Macroeconomic Equilibrium
In economics, the macroeconomic equilibrium is a state where aggregate supply equals aggregate demand.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20982/raw/as-2b-ad-graph.jpg)
Reasons for and Consequences of Shift in Aggregate Demand
A short-run shift in aggregate demand can change the equilibrium price and output level.
![Thumbnail](../../../../../../figures.boundless-cdn.com/21242/square/demand-right-shift-supply.jpg)
Reasons for and Consequences of Shift in Aggregate Supply
In economics, the aggregate supply shifts and shows how much output is supplied by firms at different price levels.