In equilibrium,
A)income = planned expenditures.
B)unplanned inventory investment is zero.
C)Ep (planned expenditures)crosses the 45-degree income line.
D)all of the above.

Question

Quizplus · Accepted Answer

In equilibrium, it is necessary that the income is equal to planned expenditures, which is represented by the point where the expenditure line intersects the 45-degree line. At this point, unplanned inventory investment is zero because all the goods produced are sold as planned. Hence, all the choices (A), (B), and (C) are correct.

In Equilibrium