In the Aggregate Expenditures Model, Equilibrium Occurs If

question 7

Multiple Choice

In the aggregate expenditures model, equilibrium occurs if:

• A) aggregate expenditures (AE) are greater than GDP.
• B) aggregate expenditures (AE) are less than GDP.
• C) there is no unplanned inventory depletion or accumulation.
• D) consumption equals investment.

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Definitions:

Oak Paneling

Oak paneling refers to wall or ceiling covering material made from oak wood, prized for its durability, appearance, and texture.

Unit-Level

Activities or costs that vary with each unit of production, such as materials and direct labor.

Batch-Level

Activities or costs that are incurred for each batch of products rather than for each unit, affecting multiple units of a product at one time.

Facility Level

Pertains to the activities and costs associated with maintaining a physical establishment or the overall environment where business operations occur.