At Equilibrium Real GDP in a Private Closed Economy

question 12

Multiple Choice

At equilibrium real GDP in a private closed economy,

• A) the MPC must equal the APC.
• B) the slope of the aggregate expenditures schedule equals the MPS.
• C) aggregate expenditures and real GDP are equal.
• D) planned saving and consumption are equal.

---

Definitions:

Attractive

Having qualities that arouse interest or desire, often used in the context of physical appearance or personality.

Healthy

Being Healthy refers to a state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Companionate Love

A deep and durable form of love that is characterized by mutual respect, attachment, affection, and trust, often found in long-term relationships.

Reciprocity Norm

is a social norm that prescribes individuals to respond to others with similar kinds of actions they have received, facilitating cooperation and social exchange.