In the aggregate expenditures model, equilibrium occurs if:
A)consumption equals investment.
B)inventory equals investment.
C)aggregate expenditures equal consumption.
D)aggregate expenditures equal disposable income.

Question

Quizplus · Accepted Answer

In the aggregate expenditures model, equilibrium occurs when aggregate expenditures equal the total output or income, which is represented by disposable income.

In the Aggregate Expenditures Model, Equilibrium Occurs If