At Equilibrium Expenditure

question 13

Multiple Choice

At equilibrium expenditure

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

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Definitions:

Accounting Information

Financial data and records about a company's transactions, financial performance, and condition.

Unlimited Personal Liability

A legal structure in certain business types where owners are personally responsible for all of the business's debts, without any limit on the amount for which they can be liable.

Corporate Form

A legal structure for businesses that is recognized as a separate entity from its owners, providing limited liability protection.

Limited Liability

This is a legal structure that protects business owners' personal assets from being used to pay off business debts and liabilities.