At equilibrium GDP,aggregate demand _______ aggregate supply and savings _______ investment.

Question

Quizplus · Accepted Answer

At equilibrium GDP, aggregate demand (AD) is equal to aggregate supply (AS) because the level of output produced is equal to the total spending on goods and services. Similarly, savings (S) is equal to investment (I) because at equilibrium, total income and expenditure are equal, and all income that is not consumed is saved and invested. Therefore, the correct choice is A – both AD and AS are equal, and S and I are also equal.

At Equilibrium GDP,aggregate Demand _______ Aggregate Supply and Savings _______

At Equilibrium GDP,aggregate Demand _ Aggregate Supply and Savings _