At the Equilibrium Level of Real GDP, Which of the Following

question 86

Multiple Choice

At the equilibrium level of real GDP, which of the following is true ?

• A) Unplanned inventory investment is positive.
• B) Unplanned inventory investment is negative.
• C) Aggregate output equals aggregate expenditures.
• D) Aggregate output plus consumption spending equals aggregate expenditures.

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Definitions:

Marginal Utility

This concept describes the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Total Utility

The complete satisfaction or benefit a consumer receives from consuming a certain amount of goods or services.

Diminishing Marginal Utility

A common economic concept stating that as a person consumes more of a product, the satisfaction (utility) gained from each additional unit decreases.

Total Utility

It is the total satisfaction or benefit that a consumer derives from consuming a certain quantity of goods or services.