Assume a Model with No Government or Foreign Sector

question 23

Multiple Choice

Assume a model with no government or foreign sector.If actual output is $13.1 trillion while aggregate demand is $13.2 trillion, we know that

• A)the magnitude of unintended inventory adjustments is - $100 billion
• B)the magnitude of unintended inventory adjustments is + $100 billion
• C)the magnitude of unintended inventory adjustments is + $10 billion
• D)the actual income level is above its equilibrium
• E)there currently is an excess supply of goods and services

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Definitions:

European American Women

Females of European descent living in the United States, including those with heritage from any European country.

African American Women

Refers to women of African descent living in the United States, highlighting a group with unique cultural, social, and health-related experiences.

Environmental Tobacco Smoke

Also known as secondhand smoke, it refers to the mixture of smoke from the burning end of a cigarette and the smoke exhaled by smokers, which can pose health risks to non-smokers.

Passive Smoking

The exposure of nonsmokers to the smoke of spouses, parents, or coworkers; environmental tobacco smoke.