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 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).
Answer and Explanation:
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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fromChapter 4 / Lesson 9
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.