iscal Policy 2. How is aggregate demand usually represented? 3. What factors can increase or decrease aggregate demand? Macroeconomic Equilibrium Main Idea: Macroeconomic equilibrium is reached when aggregate supply and aggregate demand are equal. 1. Which two major problems in macroeconomics do aggregate supply and aggregate demand help us understand? 2. Explain the positive and negative side to bringing the economy closer to macroeconomic equilibrium through demand-side policies