Which of the Following Statements Concerning the Equilibrium Level of GDP

question 24

Multiple Choice

Which of the following statements concerning the equilibrium level of GDP is incorrect?

• A)There will be no tendency for businesses to alter the aggregate rate of production.
• B)Full employment will necessarily be realized.
• C)No unintended changes in inventories will occur.
• D)Leakages equal injections.

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Definitions:

Reagan Tax Cut

Refers to the economic policies implemented during Ronald Reagan's presidency, predominantly significant reductions in income tax rates.

Aggregate Supply

The aggregate amount of products and services that companies within an economy intend to sell over a designated timeframe.

Aggregate Demand

The complete requirement for every product and service within an economy, at a specific aggregate price level over a particular time frame.

Golden Age

A period in history marked by peace, prosperity, and significant advancements in arts, science, and culture.