General equilibrium in an economy occurs:
A) at a particular interest rate where the goods market and the money market are both in equilibrium.
B) when the equilibrium level of national income in the goods market is the same as that in the money market at full employment output.
C) when interest rates in the money market and the financial markets are the same.
D) when investment equals saving.

Question

Quizplus · Accepted Answer

General equilibrium occurs when both the goods market and the money market are in equilibrium simultaneously, which typically involves a particular interest rate where these conditions are met.

General Equilibrium in an Economy Occurs