In the Simple Keynesian Aggregate Expenditure Model, the Equilibrium Level

question 44

Multiple Choice

In the simple Keynesian aggregate expenditure model, the equilibrium level of disposable income is achieved when:

• A)the employment rate is equal to the labor force participation rate.
• B)saving equals investment.
• C)aggregate expenditures exceed output.
• D)aggregate expenditures are equal to real disposable income.

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