Equilibrium Expenditure Is Defined as the Level of Aggregate Expenditure

question 57

Multiple Choice

Equilibrium expenditure is defined as the level of aggregate expenditure where

• A) spending equals output.
• B) total inventories equal zero.
• C) actual aggregate expenditure equals real GDP.
• D) aggregate planned expenditure equals real GDP.

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Definitions:

Proposition Not-p

A proposition that negates another proposition, symbolically represented as ¬p.

Contraries

Statements, ideas, or actions that are opposed to each other; in logic, two propositions are contraries if they cannot both be true but can both be false.

Negated

Made ineffective or invalidated; in logic, a proposition that denies or contradicts another proposition.

Raining

The process of precipitation in the form of water droplets falling from clouds in the atmosphere to the ground.