An economy is in macroeconomic equilibrium with total expenditure and total income each equal to £407 billion. This means that the current value of total output will be
1 )
£407 billion plus the annual rate of economic growth.
2 )
£814 billion after adjusting for the multiplier effect.
the same as total expenditure and total income.
4 )
the same as total income after adjusting for inflation.
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