Which of the following equations represents equilibrium in the goods market?
A) AE = I(r)
B) Y = AD + AS
C) Y = S + I
D) AE = C + I + G

Question

Quizplus · Accepted Answer

Equilibrium in the goods market occurs when aggregate expenditure (AE) equals the total output or income (Y), and AE is composed of consumption (C), investment (I), and government spending (G). Thus, AE = C + I + G represents this equilibrium.

Which of the Following Equations Represents Equilibrium in the Goods