In the Aggregate Expenditures Model, in Equilibrium

question 11

Multiple Choice

In the aggregate expenditures model, in equilibrium,

• A) aggregate expenditures equal real GDP produced.
• B) inventory changes equal saving.
• C) inventory changes equal investment.
• D) aggregate expenditures equal consumption.

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Definitions:

Detonator

A device or a small amount of explosive used to trigger an explosive charge or set off another explosive device.

Functional Group

A specific grouping of atoms within molecules that is responsible for the characteristic chemical reactions of those molecules.

Organic Explosives

Explosive materials composed of organic chemicals that produce a detonation or rapid expansion of gases to generate destructive effects.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to give off heat and light, often producing flame.