At the equilibrium level of real GDP, total production equals total:
A) saving.
B) investment.
C) net exports.
D) spending.

Question

Quizplus · Accepted Answer

At the equilibrium level of real GDP, total production (output) equals total spending. This is because every unit of output produced must be bought by someone, whether it is consumers, businesses, or the government. Therefore, the total spending on output at equilibrium must equal the total output produced.

At the Equilibrium Level of Real GDP, Total Production Equals