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Question ID: 12461

Which of the following statements best reflects the Keynesian macroequilibrium?

A. Equilibrium takes place when the level of total spending equals current output.
B. Equilibrium occurs when planned government expenditures equal tax revenues.
C. At equilibrium, output will tend to increase if employment is below capacity.
D. Equilibrium exists when the nominal gross domestic product equals planned aggregate expenditures.

Can somebody explain the difference between A and D ?

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