d. smaller the MPC The equilibrium level of GDP in an economy is where: a. MPC A

Question

d. smaller the MPC The equilibrium level of GDP in an economy is where: a. MPC APC. 16. unemployment is about 6 percent of the labor force. consumption equals saving. gate expenditures equal GDP ünintended increase in business inventories occurs at some level of GDP, then GDI s a rate of aggregate expenditures in excess of the rate of aggregate production may be either above or below the equilibrium output. stoo low for equilibrium. s too high for equilibrium. federal government increases the dollar amount of Social Security benefit cks for the elderly, then consumption schedule will shift upward in the 45-degree line diagram. ggregate supply curves diagram. he effect on the equilibrium real GDP will be the same as a cut in taves the aggregate demand curve will shift to the right in the aggregate demand paradox of thrift is the notion that the attempt of society to save: as reflect n adoynward shift of the consumption schedule, may be frustrate n atuift of the

Explanation / Answer

Question 16). Answer :- Option D). Aggregate expenditures equal GDP.

Explanation :- Equilibrium GDP in economy occurs where the planned aggregate expenditures (consumption expenditure + government expenditure + investment expenditure) equals to the GDP (Disposable income).

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