Question 19 At macroeconomic equilibrium total investment e

| Question 19 At macroeconomic equilibrium, total investment equals total inventories. total spending equals total production. total consumption equals total production. O O O total taxes equal total transfers.

Solution

At macroeconomic equilibrium, quantity of aggregate demand equals quantity of aggregate supply i.e. total spending equals total production. Also, at this point total spending = GDP and also, total production = Aggregate expenditure. Therefore, Aggregate expenditure = GDP at this equilibrium.

Answer- option B