Equilibrium expenditure is the level of aggregate expenditure at which
A)aggregate production equals real GDP.
B)planned inventory investment equals zero.
C)aggregate actual expenditure equals real GDP.
D)aggregate planned expenditure equals real GDP.
E)aggregate private expenditure equals real GDP.

Question

Quizplus · Accepted Answer

Equilibrium expenditure occurs when aggregate planned expenditure equals real GDP, meaning that the total amount spent on goods and services matches the total output produced.

Equilibrium Expenditure Is the Level of Aggregate Expenditure at Which