Equilibrium expenditure is
A) the amount of aggregate expenditure at which aggregate planned expenditure exceeds real GDP.
B) the amount of aggregate expenditure at which aggregate planned expenditure equals real GDP.
C) when unplanned inventory change is positive.
D) when unplanned inventory change is zero or negative.
E) the amount of aggregate expenditure at which aggregate planned expenditure is less than real GDP.
B
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The Federal Open Market Committee (FOMC) is composed of
A) representatives from the governors of all 50 states. B) Presidents of 5 Federal Reserve regional banks and the Board of Governors. C) the 12 Presidents of the Federal Reserve regional banks. D) the Board of Governors, the Vice-President of the United States, and the Secretary of Treasury for the United States.
The cross-price elasticity of demand between pancakes and waffles is positive. This indicates all of the following except one. Which is the exception?
a. Pancakes and waffles are substitutes. b. An increase in the price of pancakes will shift the demand curve for waffles to the right. c. An increase in the price of waffles will shift the demand curve for pancakes to the right. d. A decrease in the supply of waffles will shift the demand curve for pancakes to the right. e. Pancake demand and waffle demand are price elastic.