The level of GDP at which planned expenditure equals the amount of output produced is the

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Equilibrium output is the level of GDP where planned expenditure equals the amount of output produced. Choice A (potential output) refers to the maximum amount of output an economy can produce using all its resources efficiently over the long run, while choice B (long-run output) refers to the level of output an economy produces in the long run when all prices have adjusted to their equilibrium levels. Choice C (autonomous output) refers to the amount of output an economy would produce in the absence of any changes in government policy or other exogenous factors.

The Level of GDP at Which Planned Expenditure Equals the Amount