The Goods Market Is Said to Be in Equilibrium When

question 41

Multiple Choice

The goods market is said to be in equilibrium when

• A)the economy is operating at full employment.
• B)planned expenditure is equal to actual income.
• C)consumers' spending plus household saving is equal to national income.
• D)the government's budget is neither in surplus or deficit.

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Definitions:

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, eroding purchasing power.

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, entitled to receive the bond's interest payments and the return of principal.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the total amount of income on which tax is assessed.

Bankruptcy

A court-managed method enabling individuals or companies that are unable to pay off their debts to pursue reprieve for either a portion or the entirety of what they owe.