if-the-aggregate-expenditures-line-intersects-the-45-degree-line-at-a-gdp-of-5-t

Question

If the aggregate expenditures line intersects the 45-degree line at a GDP of $5 trillion, what does this indicate?

Accepted Answer

The economy is in macroeconomic equilibrium at a GDP of $5 trillion.

Answer

The economy is in a state of hyperinflation at a GDP of $5 trillion.

Answer

The economy is in a state of deflation at a GDP of $5 trillion.

Answer

The economy is experiencing a recession at a GDP of $5 trillion.

If the aggregate expenditures line intersects the 45-degree line at a GDP of \$5 trillion, what does this indicate?