In the Aggregate Expenditures Model, the Equilibrium GDP Is

question 1

Multiple Choice

In the aggregate expenditures model, the equilibrium GDP is:

• A) Assumed to be equal to the potential GDP level
• B) Not necessarily equal to the full-employment GDP
• C) Always above the potential GDP level
• D) Always less than the full-employment GDP level

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Definitions:

Rate of Return

The successful or unsuccessful financial change in an investment over a predetermined timeline, outlined as a percentage of the initial expenditure.

Annual Dividend

The complete sum of dividends a shareholder gets from a corporation over the course of a single fiscal year.

Dividend Increase

An action by a company to increase the amount of money paid out to shareholders per share, typically signaling financial health.

Market Rate

The current market rate for interest on investments or loans available in the marketplace.