Which of the Following Is Not True at the Equilibrium

question 8

Multiple Choice

Which of the following is not true at the equilibrium quantity of GDP demanded?

• A)aggregate expenditure equals real GDP
• B)planned investment equals actual investment
• C)planned investment equals saving
• D)planned investment is greater than unintended inventory adjustment
• E)planned injections into the circular flow are less than planned leakages out of the flow

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Definitions:

Retained Earnings

The accumulated portion of net income that a company elects to keep, rather than distribute to shareholders as dividends.

Future Use

Refers to resources or assets that are intended to be utilized in upcoming periods, not immediately.

Payments

Monetary transactions involving the transfer of funds to fulfill a debt or obligation.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, giving them partial ownership of the company.