In a Simple Model with No Government or Foreign Sector

question 10

Multiple Choice

In a simple model with no government or foreign sector, the change in unplanned inventory at equilibrium is

• A)dependent upon the amount of consumption
• B)equal to output minus consumption
• C)zero
• D)always positive
• E)usually negative

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Definitions:

Minerals

Naturally occurring, inorganic solid substances with a defined chemical composition and crystalline structure, found in the earth's crust.

Lithosphere

The rigid outer layer of the Earth, consisting of the crust and the uppermost mantle, involved in tectonic activities.

Troposphere

The lowest layer of Earth’s atmosphere, where weather occurs and the majority of airborne pollutants are concentrated.

Hot Air Balloon

is a lighter-than-air aircraft consisting of a bag, known as an envelope, which contains heated air that provides lift, allowing it to float in the atmosphere.