Equilibrium expenditure occurs when
A) real GDP minus net taxes equals disposable income.
B) disposable income equals consumption expenditures plus imports.
C) disposable income equals real GDP.
D) aggregate planned expenditure equals real GDP.
E) real GDP plus net taxes equals disposable income.
D
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What will be an ideal response?
Labor productivity increases if i. human capital decreases. ii. technology advances. iii. quality of education decreases
A) i only B) ii only C) iii only D) Both i and ii E) Both ii and iii
In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market purchase ________ the supply of reserves and causes the federal funds interest rate to ________, everything else held constant
A) decreases; fall B) increases; fall C) increases; rise D) decreases; rise
The optimal time for the implementation of restrictive fiscal policy would be
a. before inflation accelerated. b. after inflation accelerated. c. during a recession. d. after the price level had risen significantly.