In the aggregate expenditures model, equilibrium occurs if:
a. consumption equals investment
b. inventory equals investment.
c. aggregate expenditures equal consumption.
d. aggregate expenditures equal disposable income.
d
You might also like to view...
The definition of efficiency implies that production is carried out on the production possibilities frontier.
Answer the following statement true (T) or false (F)
Economic growth is shown by
A) a point near the top of the production possibilities curve. B) a point outside the production possibilities curve. C) an inward shift of the production possibilities curve. D) an outward shift of the production possibilities curve.
Once a division manager sees that production goal for a time period is likely to be met
a. he has an incentive to increase the pace of production b. he has an incentive to decrease the pace of production c. he does not have an incentive to change the pace of production d. he has an incentive to produce other products
When a perfectly competitive firm decides to shut down, it is most likely that
a. marginal cost is above average variable cost. b. marginal cost is above average total cost. c. price is below the firm's average variable cost. d. fixed costs exceed variable costs.