In the Keynesian model,when does equilibrium occur?
A)when aggregate demand equals income
B)when aggregate expenditure equals aggregate supply
C)when aggregate expenditure equals aggregate demand
D)when aggregate expenditure equals income

Question

Quizplus · Accepted Answer

In the Keynesian model, equilibrium occurs when aggregate expenditure equals income, as this indicates that the total spending in the economy matches the total output or income produced.

In the Keynesian Model,when Does Equilibrium Occur