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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