In the aggregate expenditures model, equilibrium occurs if:
a. aggregate expenditures (AE) are greater than GDP.
b. aggregate expenditures (AE) are less than GDP.
c. there is no unplanned inventory depletion or accumulation.
d. consumption equals investment.
c
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When one more car enters a crowded highway it increases the travel times of all other drivers on the highway creating a negative externality
a. True b. False Indicate whether the statement is true or false
Identify the correct reason behind the negative slope of the aggregate demand curve
a. Declining marginal ability b. Nature of opportunity costs c. Inverse relationship between price level and real GDP demanded. d. Overall price level
Marginal utility can be:
A) positive, but not negative B) positive or negative, but not zero. C) positive, negative, or zero. D) decreasing, but not negative.
________ is a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction.
A. Utility B. An externality C. A provisional injunction D. Marginality