can not seem to figure out this
Spending depends on income, income depends on production, and production depends on
spending.
How is this circular interdependence resolved at the macroeconomic equilibrium?
A. At this equilibrium, spending is eliminated from the interdependence principle.
B. At a macroeconomic equilibrium, the total spending is equal to the total production in the
economy, and income is determined due to this balance.
C. At a macroeconomic equilibrium, the total quantity of output that buyers purchase exceeds the
total quantity of output that suppliers produce, but income is determined.
D. At the macroeconomic equilibrium, there is incentive to deviate from this balance..
can not seem to figure out thisSpending depends on income, income .pdf
1. can not seem to figure out this
Spending depends on income, income depends on production, and production depends on
spending.
How is this circular interdependence resolved at the macroeconomic equilibrium?
A. At this equilibrium, spending is eliminated from the interdependence principle.
B. At a macroeconomic equilibrium, the total spending is equal to the total production in the
economy, and income is determined due to this balance.
C. At a macroeconomic equilibrium, the total quantity of output that buyers purchase exceeds the
total quantity of output that suppliers produce, but income is determined.
D. At the macroeconomic equilibrium, there is incentive to deviate from this balance.
