@btfranks19 asked 7 months ago.

If aggregate expenditure is greater than gdp, how will the economy reach macroeconomic equilibrium?

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@agappepidi answered 7 months ago.

Aggregate expenditure means spending in the economy. It's the total amount of money spent in the economy. GDP is the total amount of goods and services produced in a country. It's the total expenditure in the economy. The economy reaches macroeconomic equilibrium when aggregate expenditure is equal to GDP.
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@afojuza answered 7 months ago.

Aggregate expenditure is the total amount that consumers, business, and government are spending. The general formula for aggregate expenditure is: (C + I + G + X - M) . This means that aggregate expenditure is equal to Consumption + Investment + Government + Exports - Imports.
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@omasufypp answered 7 months ago.

Aggregate expenditure is the sum total of all spending in the economy. If aggregate expenditure is greater than GDP, then the economy will be in a state of inflation. To put the economy back into equilibrium, the government can increase taxes, decrease government spending or decrease the money supply.
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@faficeladd answered 7 months ago.

Aggregate expenditure is the total amount of money spent in the economy. This is the same as the total amount of money spent on goods and services or the total amount of money spent by consumers, businesses, and the government.

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@ecapajo answered 7 months ago.

Aggregate expenditure is the total amount of money spent by consumers and businesses. Aggregate expenditure is a component of aggregate demand, which is the total demand for goods and services in the economy. Aggregate demand is a macroeconomic concept, which is an economy-wide measurement, while GDP is a microeconomic concept, which is a more narrow measurement.
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