Question

In: Economics

The Keynesian equilibrium is defined to be when:

The Keynesian equilibrium is defined to be when:

Multiple Choice

  • planned inventories equal to actual inventories, which leads to national net income equal to planned aggregate expenditure.

  • planned spending is equal to expected spending from households.

  • planned investment is equal to domestic consumption.

  • planned inventories equal to actual inventories, which leads to national income equal to planned aggregate expenditure.

Solutions

Expert Solution

Option

planned inventories equal to actual inventories, which leads to national income equal to planned aggregate expenditure

===

The Keynesian equilibrium is defined to be when planned inventories equal to actual inventories, which leads to national income equal to planned aggregate expenditure.

The identity

Y=AE

Real actual GDP =aggegate expenditure

Y=C+I+G+NX

C=consumption

I=investment

G=govenment spending

NX=net export

Rahul Sunny answered 2 years ago
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