Which of the following does NOT characterize what happens at the equilibrium quantity of GDP demanded?
A) Planned investment equals actual investment.
B) Planned investment equals saving.
C) Planned investment is greater than unintended inventory adjustment.
D) Planned injections into the circular flow are less than planned leakages out of the flow.

Question

Which of the following does NOT characterize what happens at the equilibrium quantity of GDP demanded?  
A) Planned investment equals actual investment. 
B) Planned investment equals saving. 
C) Planned investment is greater than unintended inventory adjustment. 
D) Planned injections into the circular flow are less than planned leakages out of the flow.

Quizplus · Accepted Answer

At the equilibrium quantity of GDP demanded, planned injections into the circular flow (such as investment, government spending, and exports) equal planned leakages out of the flow (such as savings, taxes, and imports), not less than. Choices A, B, and C correctly characterize equilibrium conditions, where planned investment equals actual investment, planned investment equals saving, and planned investment is greater than unintended inventory adjustment, respectively.

Which of the Following Does NOT Characterize What Happens at the Equilibrium