At Equilibrium Expenditure

question 177

Multiple Choice

At equilibrium expenditure

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

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Definitions:

Constitution

Essential doctrines or traditional benchmarks that shape the management of a state or equivalent institution.

Separation of Powers

A fundamental principle in constitutional law where the government is divided into distinct branches (legislative, executive, judicial), each with its own powers and responsibilities to prevent abuse of power.

Government

The system or group of people governing an organized community, often a state, including the institutions and officials in charge of policy making and administration.

Judicial Review

The power of the courts to assess the constitutionality of legislative acts or executive actions.