In the short-run macro model,equilibrium occurs when
A) all of the following conditions are satisfied
B) the unintended change in inventories is zero
C) total sales equals output
D) the aggregate expenditure line intersects the 45-degree line
E) GDP equals aggregate expenditure

Question

Quizplus · Accepted Answer

Equilibrium in the short-run macro model is achieved when all of the following conditions are satisfied: aggregate expenditure equals output (Y), planned investment equals actual investment, unintended change in inventories is zero, and there are no forces causing firms and households to change their spending plans.

In the Short-Run Macro Model,equilibrium Occurs When