In macroeconomics, equilibrium is defined as that point at which ?
Correct answer: C. Planned aggregate expenditure equals aggregate output
- A. aggregate output equals consumption minus investment
- B. saving equals consumption
- C. Planned aggregate expenditure equals aggregate output
- D. planned aggregate expenditure equals consumption
Explanation
Macroeconomic equilibrium occurs when planned aggregate expenditure equals actual aggregate output, so firms have no unintended buildup or depletion of inventories.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Assuming there is no government or foreign sector the formula for the multiplier is ?
According to the paradox of thrift increased efforts to save will cause ?
The accelerator theory of investment says that induced investment is determined by ?
The proportion of an increase in national income paid in tax is ?
The marginal propensity to save (MPS) is ?
In the equation C = a + bY, which describes the aggregate consumption function 'b' stands for ?