Equilibrium Expenditure Is the Level of Aggregate Expenditure at Which

question 59

Multiple Choice

Equilibrium expenditure is the level of aggregate expenditure at which

• A)aggregate production equals real GDP.
• B)planned inventory investment equals zero.
• C)aggregate actual expenditure equals real GDP.
• D)aggregate planned expenditure equals real GDP.
• E)aggregate private expenditure equals real GDP.

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Definitions:

Mid-Atlantic Ridge

A continuous underwater mountain range in the Atlantic Ocean, formed by tectonic plate divergence.

Submarine Mountain

An underwater mountain, formed by volcanic activity or tectonic movements, rising significantly above the surrounding seafloor.

Meteorites

Solid pieces of debris from objects such as asteroids or comets that have made their way through the Earth's atmosphere and landed on the surface.

Continental Drift

The hypothesis, now a scientific theory, that the Earth's continents have moved over geological time relative to each other, appearing to have "drifted" across the ocean bed.