At the equilibrium level of income, which of the following is true?

Question

Quizplus · Accepted Answer

At equilibrium level of income, aggregate expenditures are equal to real GDP which means that planned spending is equal to actual output. This implies that there are no unplanned inventory changes as firms are producing the desired rate of output. Autonomous consumption spending may not necessarily be equal to induced consumption spending at equilibrium level of income, and unplanned investment spending may not necessarily be positive.

At the Equilibrium Level of Income, Which of the Following