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Which of the following statements is true? The intersection of the aggregate demand and aggregate supply...

Which of the following statements is true?

The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price and quantity.
The aggregate demand curve indicates a positive relationship between the price level and GDP.
Other things equal, a downward shift of the aggregate demand curve implies that the economy enters an expansionary phase.
Aggregate demand and aggregate supply determine the equilibrium price and quantity of a single good.
The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price level and the equilibrium level of real GDP.
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Answer #1

Option 5

The intersection of the aggregate demand and aggregate supply curves determines the equilibrium price level and the equilibrium level of real GDP

AD has a negative relationship with the price level and real GDP, and it is upward sloping, and it is the relationship between whole economic activities.

AS curve is upward sloping and has a positive relationship between price level and real output.

The intersection of AD-AS provides equilibrium actual real GDP and price level in the economy.

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