All of the following,except one,are true statements about expenditure equilibrium.Which is the exception?
A)It is the national income at which the value of production and aggregate expenditures are equal.
B)It is the national income level at which there is neither a surplus nor a shortage of production.
C)It is the national income level at which planned investment is equal to zero.
D)It is the national income level at which total injections equal total leakages.

Question

Quizplus · Accepted Answer

Expenditure equilibrium is the point at which total injections (consumption, investment, and government spending) equal total leakages (savings, taxes, and imports) in an economy, ensuring that there is neither surplus nor shortage of production. Additionally, it is the national income at which the value of production and aggregate expenditures are equal. However, expenditure equilibrium does not necessarily mean planned investment is equal to zero. Investment can still occur at expenditure equilibrium, but it is offset by other leakages such as savings or taxes.

All of the Following,except One,are True Statements About Expenditure Equilibrium