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Identify the following statements about macroeconomic equilibrium as either true or false : - If...

Question:

Identify the following statements about macroeconomic equilibrium as either true or false :

- If economy-wide spending increases, firms may increase production by hiring new workers to meet his increase in sales

- When aggregate expenditure is less than GDP, inventories rise

- Macroeconomic equilibrium occurs when consumer spending is equal to consumer saving

- Falling inventories signal that GDP is greater than aggregate expenditure

- If aggregate expenditure equals GDP, inventories Don't change

Macroeconomics:

Macroeconomics refers to the study of economics in terms of the entire system. It analyzes the behavior, structure, decision making and performance of the economy as a whole. Macroeconomics looks at the bigger picture which includes inflation, levels of unemployment, national income, and Gross Domestic Product (GDP).

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Macroeconomic equilibrium. It is defined as a condition in the economy where the aggregate demand equals the aggregate supply. When either demand or...

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What is Macroeconomics? - Definition & Principles

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Chapter 4 / Lesson 9
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Understand the definition of macroeconomics and what macroeconomics focuses on. Learn the principles of macroeconomics, including economic output, economic growth, unemployment, inflation and deflation, and investment.


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