In the Aggregate Demand-Output Model, Equilibrium Occurs If

question 73

Multiple Choice

In the aggregate demand-output model, equilibrium occurs if:

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

---

Definitions:

Latent Content

In psychoanalytic theory, the underlying meaning or significance hidden in dreams, distinct from the dreams' manifest content.

REM Sleep

A stage of sleep characterized by rapid eye movements, vivid dreams, and increased brain activity.

Dreams

A series of thoughts, images, and sensations occurring in a person's mind during sleep, often reflecting subconscious content or processing of daily experiences.

Information Processing

The series of actions or steps taken to acquire, modify, store, and use data or information.