When the Economy Is in Equilibrium

question 196

Multiple Choice

When the economy is in equilibrium,

• A) there are increases in inventory.
• B) there are decreases in inventory.
• C) total expenditures equal total production.
• D) people want to buy more than will be produced.

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Definitions:

Required Credit

The minimum credit score or financial requirement needed by an individual to qualify for certain loans, services, or credit lines.

Open Account Agreement

A financial arrangement between sellers and buyers allowing the buyer to pay the seller at a later date, commonly used in international trade.

Least Safe

Describing a condition or situation that poses the most significant risk of harm, injury, or danger to individuals or property.

Unfavorable Balance

Describes a situation where a country's imports exceed its exports, leading to a deficit in the balance of payments.