What is the relationship between aggregate planned expenditure and real GDP at equilibrium expenditure?
What will be an ideal response?
Equilibrium expenditure occurs when aggregate planned expenditure equals real GDP.
Economics
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A Keynesian economist believes that
A) if the economy was left alone, it would rarely operate at full employment. B) the economy is self-regulating and always at full employment. C) the economy is self-regulating and will normally, though not always, operate at full employment if monetary policy is not erratic. D) the economy is self-regulating and will normally, though not always, operate at full employment if fiscal policy is not erratic.
Economics
A 10% decrease in real income usually leads to ________ in money demand
A) an increase B) no change C) a decrease of less than 10% D) a decrease of 10%
Economics