Asked by Katia Mejia on Jun 20, 2024
Verified
If there are no unintended changes in inventories,the economy is at its equilibrium level of real gross domestic product (GDP)demanded.
Real Gross Domestic Product
Real Gross Domestic Product is another term for Real GDP, indicating the value of all goods and services produced by an economy adjusted for inflation or deflation.
Inventories
The stockpiles or amounts of goods being held by a business to fulfil future sales or production needs.
- Learn about the idea of stability in connection with overall expenditure and genuine Gross Domestic Product.
Verified Answer
LS
Lekshmi SudhaJun 23, 2024
Final Answer :
True
Explanation :
When there are no unintended changes in inventories, it means that firms are producing exactly the amount of goods and services that are being demanded in the economy. Therefore, the economy is at its equilibrium level of real GDP demanded.
Learning Objectives
- Learn about the idea of stability in connection with overall expenditure and genuine Gross Domestic Product.
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