Equilibrium expenditure is defined as the level of aggregate expenditure where...
a) actual aggregate expenditure equals real GDP
b) total inventories equal zero
c) aggregate planned expenditure equals real GDP
d) spending equals output
c) aggregate planned expenditure equals real GDP
You might also like to view...
Improvements in human capital and education played a major role in the productivity improvements of the U.S. economy from 1995 to 2009
a. True b. False Indicate whether the statement is true or false
A narrowly defined market will tend to make concentration appear _________, while a broadly defined market will tend to make it appear _________.
A. concerning; less concerning B. higher; smaller C. less concerning; concerning D. smaller; higher
In the figure below, we see an expansion of the production-possibility curve (from PPC1 to PPC2). The two goods produced are wheat and cloth, which are land-intensive and labor-intensive, respectively. The outward shift of the production-possibility curve is likely the result of
A. a fall in the average cost of producing cloth. B. an increase in the national amount of usable land, the size of the labor force remaining unchanged. C. an increase in the size of the labor force, the area under cultivation remaining unchanged. D. an increase in the price of cloth.
In developing countries, the highest returns are from investing in:
A. transportation systems. B. sanitation systems. C. education. D. defense.