The output level where planned expenditures equals GDP is called the:

Question

Quizplus · Accepted Answer

The output level where planned expenditures equals GDP is known as the equilibrium output. This is where the economy is in balance, with no tendency for output or prices to change, and all goods produced have been so because consumers and businesses want to buy them. The equilibrium output is also referred to as the level of potential GDP, as it represents the maximum sustainable level of output that can be produced in the economy over the long term.

The Output Level Where Planned Expenditures Equals GDP Is Called