When the Economy Is Operating at the Equilibrium Level of GDP

question 414

Multiple Choice

When the economy is operating at the equilibrium level of GDP, we know that

• A) total planned real consumption expenditures equal real GDP.
• B) planned real investment spending equals real net exports of zero.
• C) total planned real expenditures equal real GDP.
• D) real net exports equal inventory changes.

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Definitions:

Promissory Estoppel

A legal principle that prevents a promisor from retracting a promise which the promisee relied on, leading to a detriment.

Equitable Doctrine

Legal principles developed by courts based on fairness and justice, used to supplement and correct strict legal rules that might lead to unfair results.

Unjust Enrichment

A legal principle that prevents one party from gaining a benefit at another's expense without compensation.

Implied in Fact Contract

An agreement inferred from the actions, behavior, or circumstances of the parties involved, rather than written or spoken words.