Where the planned expenditure and the 45-degree lines intersect,the economy is ________ equilibrium,with unplanned inventory investment equal to ________.
A)in,zero
B)out of,zero
C)in,planned inventory investment
D)in,autonomous planned expenditure
E)out of,autonomous planned expenditure

Question

Quizplus · Accepted Answer

When the planned expenditure and the 45-degree lines intersect, it indicates that there is equilibrium in the economy, where actual output is equal to planned output. At this point, there is no unplanned inventory investment as businesses have produced and sold what they intended. Therefore, the correct choice is (A) in equilibrium, with zero unplanned inventory investment.

Where the Planned Expenditure and the 45-Degree Lines Intersect,the Economy