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

question 98

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:

Microdrip Tubing

Specialized tubing used in medical settings that allows for very small and precise volumes of fluid to be administered intravenously.

NS

An abbreviation commonly used for Normal Saline, a sterile solution of sodium chloride (salt) in water, used for a variety of medical purposes.

LRS

Lactated Ringer's Solution, an isotonic fluid commonly used for intravenous hydration and electrolyte replenishment.

NaCl

Sodium chloride, commonly known as table salt, but in medical settings, it refers to a saline solution used for IV fluids.