In macroeconomics, the point at which planned aggregate expenditures equals aggregate output
A) is the equilibrium point.
B) is where saving is negative.
C) is only achieved if net exports are zero.
D) only occurs when the MPC is equal to the MPS.

Question

Quizplus · Accepted Answer

The point at which planned aggregate expenditures (which includes consumption, investment, government spending, and net exports) equals aggregate output (which is the sum of all goods and services produced in an economy) is the equilibrium point. This is where the economy is in balance, with no excess demand or supply, and where the economy tends to gravitate towards in the long run.

In Macroeconomics, the Point at Which Planned Aggregate Expenditures Equals