At equilibrium expenditure...
a) consumers' expenditures on goods and services equal firms' purchases of investment goods
b) firms hold no inventories of raw materials or final goods
c) aggregate planned expenditure equals real GDP
d) aggregate planned expenditure equals real GDP minus net exports
c) aggregate planned expenditure equals real GDP
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The ability to read, write, and run calculations are examples of human capital.
Answer the following statement true (T) or false (F)
When there is a liquidity trap, the money demand curve is ________.
A. downward sloping B. flat C. upward sloping D. vertical
A proponent of supply-side economics would advocate
A. reducing income taxes on saving. B. reducing tax credits for research and development. C. eliminating the depreciation allowance. D. increasing the corporate income tax.
The NPV criterion states that an investment project is profitable when its NPV is ______ and unprofitable when its NPV is ______.
A. positive; positive B. positive; negative C. negative; positive D. negative; negative