Question

The aggregate demand in an economy is equal to aggreate supply. Can it be said that economy said that economy has achieved full employment equilibrium ?

Answer 1

No, equality between aggregate demand (AD) and aggregate supply (AS) only indicates the equilibrium position of the economy. It is not necessary that this equality is always achieved at full employment level. It means, equality between AD and AS can occur at full employment level, underemployment level or over full employment level.