What is Equilibrium Output???
Answers
Answer:
Equilibrium Output It refers to the level of output where the Aggregate Demand is equal to the Aggregate Supply (AD = AS) in an economy. It signifies that whatever the producers intend to produce during the year is exactly equal to what the buyers intend to buy during the year.
Definition:-
Equilibrium Output It refers to the level of output where the Aggregate Demand is equal to the Aggregate Supply (AD = AS) in an economy.
It signifies that whatever the producers intend to produce during the year is exactly equal to what the buyers intend to buy during the year.
Formula:-
E=C+I+G+NX [Aggregate demand is the total of consumption, investment, government purchases, and net exports.] E=Y* [In equilibrium, total spending matches total income or total output.]
It's output of a firm:-
A firm is in equilibrium when it has no desire to change (increase or decrease) its output levels. At the equilibrium point, the firm earns maximum profits. In this article, we will talk about the equilibrium of the firm along with two approaches to the producer's equilibrium.