Which of the Following Statements Is True About Equilibrium in the Aggregate

question 89

Multiple Choice

Which of the following statements is true about equilibrium in the aggregate expenditures model?
I. Equilibrium is found at the level of real GDP at which the aggregate expenditures curve crosses the 45-degree line.
II. In equilibrium, real GDP produced equals aggregate expenditures.
III. In equilibrium, inventories equal zero.
IV. In equilibrium, real GDP produced equals potential real GDP.

• A) I only
• B) I and II only
• C) I, II, and III only
• D) I, II, III, and IV

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Definitions:

Companionate Relationships

Long-term, affectionate relationships characterized by deep emotional bonds, commitment, and intimacy, but not necessarily passion.

Replacement Level

The fertility rate required for a population to replace itself from one generation to the next without migration, typically quantified as 2.1 children per woman in most developed countries.

Fertility

The natural capability of giving life, often measured by the ability to conceive and bear offspring.

American Woman

Could refer to a female citizen or resident of the United States, or to cultural, social, or political aspects related to American women.