macroeconomics concept of equilibrium

Q1. Explain the concept of equilibrium in the context of the Aggregate Expenditures model of the macro economy.

Q2. Australia’s GDP is approximately $1.5t. If Full Employment GDP for Australia is $1.8t, what type of situation exists for the economy? Illustrate this on a diagram.

Q1. Explain the concept of equilibrium in the context of the Aggregate Expenditures model of the macro economy.

Q2. Australia’s GDP is approximately $1.5t. If Full Employment GDP for Australia is $1.8t, what type of situation exists for the economy? Illustrate this on a diagram.