Equilibrium expenditure is the level of aggregate expenditure at which
A) aggregate planned expenditure equals real GDP.
B) aggregate private expenditure equals real GDP.
C) planned inventory investment equals zero.
D) aggregate production equals real GDP.
E) aggregate actual expenditure equals real GDP.
A
You might also like to view...
The economic way of thinking views government as a social institution
A) in which people do not compete. B) in which the public interest has priority over private interests. C) whose actions are controlled by the will of the majority. D) whose actions are determined by individuals' perceptions of their self-interest.
Inflation usually increases during a recession and decreases during an expansion
Indicate whether the statement is true or false
In general, changes in the price level will change the:
A. real value of people's wealth and income. B. nominal value of cash balances. C. real value of consumption goods only. D. nominal value of consumption goods and the real value of durable goods.
Monopoly is characterized by
A. a horizontal demand curve. B. many close substitutes. C. no barriers to entry. D. a downward sloping demand curve.