Equilibrium Expenditure Is

question 189

Multiple Choice

Equilibrium expenditure is

• A) the amount of aggregate expenditure when aggregate planned expenditure equals real GDP.
• B) when unplanned inventory change is positive.
• C) the amount of aggregate expenditure when aggregate planned expenditure exceeds real GDP.
• D) the amount of aggregate expenditure when aggregate planned expenditure is less than real GDP.
• E) when unplanned inventory change is zero or negative.

---

Definitions:

Economic Inefficiencies

Occurrences where resources are not allocated optimally, leading to lost potential output or welfare.

Monopsony

Market with only one buyer.

Public Goods

Public goods are commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.

Nonexclusive Good

Good that people cannot be excluded from consuming, so that it is difficult or impossible to charge for its use.