When the Economy Is in Equilibrium

question 196

Multiple Choice

When the economy is in equilibrium,

• A) there are increases in inventory.
• B) there are decreases in inventory.
• C) total expenditures equal total production.
• D) people want to buy more than will be produced.

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Definitions:

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The act of rewording or rephrasing a set of ideas in one's own words while maintaining the original meaning.

Citations Page

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Econometrics

The application of statistical and mathematical methods in the field of economics to test hypotheses and forecast future trends.

Economic Theory

A set of principles and frameworks for analyzing how resources are distributed and consumed, and how economies function.