Question

Macroeconomic equilibrium occurs where A. total​ production, or​ GDP, equals total planned investment. B. the unemployment rate is zero. C. total​ spending, or aggregate​ expenditure, equals total​ production, or GDP. D. consumption equals investment and investment equals government expenditure.

Answer 1

Answer: Option C

Explanation: In simple words, macroeconomics refers to that branch of economics which studies the economy as a whole.

The equilibrium in macroeconomic aspect refers to a situation when the aggregate demand of an economy equals its aggregate supply in the market.

The demand generates from the expenditure and the supply generates from the production.

Hence from the above we can conclude that the correct option is C.