We define equilibrium as the point where:

Question

Quizplus · Accepted Answer

Equilibrium in macroeconomics is the point where planned aggregate spending, which includes consumption, investment, government spending, and net exports, equals the level of output in the economy. Option B correctly states that equilibrium occurs when planned spending equals output. Options A and D are incorrect because they refer only to depreciation and investment, respectively, which are not sufficient to define overall equilibrium in the economy. Option C mistakenly implies that planned spending equals only consumption, investment, and government spending, which ignores the impact of net exports on the economy.

We Define Equilibrium as the Point Where