At Equilibrium Expenditure

question 158

Multiple Choice

At equilibrium expenditure

• A) consumers' expenditures on goods and services equal firms' purchases of investment goods.
• B) aggregate planned expenditure equals real GDP minus net exports.
• C) aggregate planned expenditure equals real GDP.
• D) firms hold no inventories of raw materials or final goods.

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Definitions:

Primitive

Denotes something that is basic or unsophisticated in terms of development or technology, often implying an early stage of evolutionary or historical development.

Instinctive Component

An innate part of behavior that arises from within and is driven by evolutionary pressures, without the need for conscious thought.

Personality

A mix of features and qualities that define an individual's specific character.

Reality Principle

A psychoanalytic concept where behavior is governed by the considerations of the external world, in contrast to the pleasure principle.