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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View this answerMacroeconomic 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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Chapter 4 / Lesson 9Understand 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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