Which of the Following Equations Represents Equilibrium in the Goods

question 20

Multiple Choice

Which of the following equations represents equilibrium in the goods market?

• A) AE = I(r)
• B) Y = AD + AS
• C) Y = S + I
• D) AE = C + I + G

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Definitions:

Motorcycle Manufacturer

A company that designs, produces, and sells motorcycles.

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, and is located in a country different from where the parent company is situated.

Sweatshops

Work environments that have poor working conditions, violations of labor laws, and unethical treatment of workers, often with extremely low pay.

Poor Working Conditions

An environment where the safety, health, and well-being of employees are not adequately protected.