To reach general equilibrium, the price level adjusts to shift the demand curve until it intersects with the supply curve.
Given an incomplete question related to general equilibrium.
We are required to fill the sentence with appropriate terms.
Equilibrium refers to the condition of a market where the demand of the product is equal to the supply of the product.
Equilibrium condition:
When price of the product increases ,the demand of the product decreases and when the price of the product decreases , the demand of the product increases. So, the price level adjusts to shift the demand curve and to reach the equilibrium level ,it has to meet with supply curve.
Hence to reach general equilibrium, the price level adjusts to shift the demand curve until it intersects with the supply curve.
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