The Economy Can Be in Equilibrium If, and Only If

question 165

Multiple Choice

The economy can be in equilibrium if, and only if,

• A) planned investment is zero.
• B) actual investment is zero.
• C) planned investment is greater than actual investment.
• D) planned investment equals actual investment.

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Definitions:

Trading Blocs

Groups of countries that have formed international agreements to enhance trade among themselves through the reduction of tariffs and common regulations.

West European

Pertaining to the countries located in the western part of Europe, often characterized by shared historical, cultural, and political experiences.

North American

Of or relating to the continent that includes Canada, the United States, Mexico, and the countries of Central America.

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, transforming agriculture-based societies into industrialized and urban ones.