What is defined as macreconomic equilibrium?

Macroeconomic equilibrium is achieved at the intersection of aggregate demand and short-run aggregate supply. This point represents a state where the total quantity of goods and services demanded in an economy equals the total quantity of goods and services supplied. At this intersection, there is no inherent pressure for the overall price level to change, meaning that the economy is in a stable state without forces moving it toward inflation or deflation.

In this context, aggregate demand reflects the total spending on the nation's goods and services at various price levels, while short-run aggregate supply encapsulates the total production the economy is able to supply at those price levels. When these two curves converge, it indicates that resources are being utilized efficiently, and the market conditions are in balance.

The other options do not encapsulate the definition of macroeconomic equilibrium in the same way. While the balance of consumer spending and savings (one option) is crucial for economic health, it does not specifically define the equilibrium concept. The total output of the economy (another option) is related but does not consider the balance between demand and supply necessary for equilibrium. Lastly, the level of national income, while reflective of the economy's performance, doesn't concentrate on the intersectional balance between aggregate demand and supply required to establish macroeconomic