Prior to the 1970s, the Model of Choice Was the Aggregate

question 25

Multiple Choice

Prior to the 1970s, the model of choice was the aggregate expenditures model. According to Jthis model, if the economy was in equilibrium at an income greater than the full employment level, then the primary economic problem would be

• A) excessive bank lending.
• B) potential crises in financial markets.
• C) inflation.
• D) excess aggregate demand.

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Definitions:

Secondary Consumer

Organisms, typically carnivores or omnivores, that obtain energy by consuming primary consumers in an ecosystem's food chain.

Tertiary Consumer

An organism that typically occupies the fourth trophic level in a food web, primarily consuming secondary consumers.

Carnivore

Consumer in a food chain that eats other animals.

Biogeochemical Cycle

A natural process involving the circulation and transformation of chemicals in the Earth's ecosystems.