When an economy is in equilibrium,
A)planned expenditures exceed production and income.
B)there is no savings nor investment.
C)government tax revenues equal planned government expenditures.
D)production and income equal planned expenditures.

Question

Quizplus · Accepted Answer

In equilibrium, production and income are equal to planned expenditures, which means that all goods and services produced are being purchased and there is no excess supply or demand. Therefore, D is the correct choice. A, B, and C are not accurate descriptions of an economy in equilibrium.

When an Economy Is in Equilibrium