Suppose the Expenditure Line Is Given by the Equation E

question 51

Multiple Choice

Suppose the expenditure line is given by the equation E = 800 + .75Y, and output is equal to 3,000. Which of the following is true?

• A)There is an incentive for firms to increase output.
• B)Spending is less than income.
• C)Spending is equal to income.
• D)The economy is in equilibrium.
• E)There is too much output.

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Definitions:

Respondents

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Time Horizon Categories

The classification of planning or forecasting periods into short-term, medium-term, and long-term, based on their respective durations.

Short-Range

Pertaining to activities, planning, or forecasting that covers a relatively brief period of time, typically up to one year.

Medium-Range

Pertaining to the intermediate term, often in the context of planning, forecasting, or operations.