Question

Disequilibrium occurs in the multiplier model when: 0 A, planned expenditures do not exactly equal production. B. planned expenditures equal production. C. the income saved by households is made available to firms for investment. D. withdrawals from the circular flow equal injections.

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Answer #1

Disequilibrium occurs in the multiplier model when planned expenditures do not exactly equal production.

If the planned expenditures equals production, the multiplier model would be in equilibrium.

Answer is option (A)

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