What is meant by expenditure equilibrium?
A)The income at which savings equals consumption.
B)The level of aggregate expenditures at which savings equals consumption.
C)The income at which the value of production and aggregate expenditures are equal.
D)The income at which the level of aggregate expenditures is zero.
E)Where income is equal to the value of production.

Question

Quizplus · Accepted Answer

EExpenditure equilibrium occurs when the total income in an economy (or the value of production) is equal to the total aggregate expenditures, meaning all the money spent in an economy on goods and services matches the value of goods and services produced. This ensures that the economy is in a state of balance without unintended inventory build-up or depletion.

What Is Meant by Expenditure Equilibrium