Exhibit 8-9 Aggregate Expenditures Function in Exhibit 8-9, Aggregate

question 155

Multiple Choice

Exhibit 8-9 Aggregate expenditures function In Exhibit 8-9, aggregate income will equal consumption plus investment and the economy will be in equilibrium when real disposable income is:

• A)$2.33 trillion.
• B)$3 trillion.
• C)$7 trillion.
• D)$10 trillion.

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Definitions:

Raw Materials Inventory

Stock of basic materials that are used in the production process of goods and are yet to be processed or transformed into final products.