In the Simple Macro Model That Is Considered in Chapters

question 43

Multiple Choice

In the simple macro model that is considered in Chapters 21 and 22 of the textbook,

• A)the economy is always in equilibrium.
• B)there is no government or foreign trade.
• C)the price level is determined within the model.
• D)there are no supply-side influences on national income.
• E)the simple multiplier is always equal to 1.

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Definitions:

Decimal Places

Decimal places refer to the digits that appear after the decimal point in a numerical value, representing fractions of a whole.

LCD Television

A television display technology based on liquid crystal display, which uses liquid crystals to produce images.

GST

Goods and Services Tax, a value-added tax imposed on most goods and services sold for domestic consumption.

PST

PST stands for Provincial Sales Tax, which is a tax levied by individual provinces in Canada on the sale of goods and services.